Efnisyfirlit

• Half Title Page
• Title Page
• Copyright Page
• Brief Contents
• Contents
• Preface
• Chapter 1 Introduction
• 1.1 Managerial Decision Making
• Profit
• Trade‐Offs
• Other Decision Makers
• Strategy
• 1.2 Economic Models
• Mini‐Case Using an Income Threshold Model in China
• Simplifying Assumptions
• Testing Theories
• Positive and Normative Statements
• Summary
• Chapter 2 Supply and Demand
• Managerial Problem Carbon Taxes
• 2.1 Demand
• The Demand Curve
• The Demand Function
• Using Calculus Deriving the Slope of a Demand Curve
• Summing Demand Curves
• Mini‐Case Summing Corn Demand Curves
• 2.2 Supply
• The Supply Curve
• The Supply Function
• Summing Supply Curves
• 2.3 Market Equilibrium
• Using a Graph to Determine the Equilibrium
• Using Algebra to Determine the Equilibrium
• Forces That Drive the Market to Equilibrium
• 2.4 Shocks to the Equilibrium
• Effects of a Shift in the Demand Curve
• Q&A 2.1
• Effects of a Shift in the Supply Curve
• Managerial Implication Taking Advantage of Future Shocks
• Effects of Shifts in both Supply and Demand Curves
• Mini‐Case Genetically Modified Foods
• Q&A 2.2
• 2.5 Effects of Government Interventions
• Policies That Shift Curves
• Mini‐Case Occupational Licensing
• Price Controls
• Mini‐Case Venezuelan Price Ceilings and Shortages
• Sales Taxes
• Q&A 2.3
• Managerial Implication Cost Pass‐Through
• 2.6 When to Use the Supply‐and‐Demand Model
• Managerial Solution Carbon Taxes
• Summary
• Questions
• Chapter 3 Empirical Methods for Demand Analysis
• Managerial Problem Estimating the Effect of an iTunes Price Change
• 3.1 Elasticity
• The Price Elasticity of Demand
• Managerial Implication Changing Prices to Calculate an Arc Elasticity
• Q&A 3.1
• Mini‐Case Demand Elasticities for Google Play and Apple Apps
• Using Calculus The Point Elasticity of Demand
• Elasticity Along the Demand Curve
• Q&A 3.2
• Other Demand Elasticities
• Mini‐Case Anti‐Smoking Policies May Reduce Drunk Driving
• Demand Elasticities over Time
• Other Elasticities
• Estimating Demand Elasticities
• 3.2 Regression Analysis
• A Demand Function Example
• Mini‐Case The Portland Fish Exchange
• Multivariate Regression
• Q&A 3.3
• Goodness of Fit and the R2 Statistic
• Managerial Implication Focus Groups
• 3.3 Properties and Statistical Significance of ‐Estimated Coefficients
• Repeated Samples
• Desirable Properties for Estimated Coefficients
• A Focus Group Example
• Confidence Intervals
• Hypothesis Testing and Statistical Significance
• 3.4 Regression Specification
• Selecting Explanatory Variables
• Mini‐Case Determinants of CEO Compensation
• Q&A 3.4
• Functional Form
• Managerial Implication Experiments
• 3.5 Forecasting
• Extrapolation
• Theory‐Based Econometric Forecasting
• Managerial Solution Estimating the Effect of an iTunes Price Change
• Summary
• Questions
• Chapter 4 Consumer Choice
• Managerial Problem Paying Employees to Relocate
• 4.1 Consumer Preferences
• Properties of Consumer Preferences
• Mini‐Case You Can’t Have Too Much Money
• Preference Maps
• 4.2 Utility
• Utility Functions
• Ordinal and Cardinal Utility
• Marginal Utility
• Using Calculus Marginal Utility
• Marginal Rates of Substitution
• 4.3 The Budget Constraint
• Slope of the Budget Line
• Using Calculus The Marginal Rate of Transformation
• Effects of a Change in Price on the ‐Opportunity Set
• Effects of a Change in Income on the ‐Opportunity Set
• Q&A 4.1
• Mini‐Case Rationing
• Q&A 4.2
• 4.4 Constrained Consumer Choice
• The Consumer’s Optimal Bundle
• Q&A 4.3
• Mini‐Case Why Americans Buy More E‐Books Than Do Germans
• Q&A 4.4
• Promotions
• Managerial Implication Designing Promotions
• 4.5 Deriving Demand Curves
• 4.6 Behavioral Economics
• Tests of Transitivity
• Endowment Effects
• Mini‐Case How You Ask the Question Matters
• Salience
• Managerial Implication Simplifying ‐Consumer Choices
• Managerial Solution Paying Employees to Relocate
• Summary
• Questions
• Appendix 4A The Marginal Rate of Substitution
• Appendix 4B The Consumer Optimum
• Chapter 5 Production
• Managerial Problem Labor Productivity During Recessions
• 5.1 Production Functions
• 5.2 Short‐Run Production
• The Total Product Function
• The Marginal Product of Labor
• Using Calculus Calculating the Marginal Product of Labor
• Q&A 5.1
• The Average Product of Labor
• Graphing the Product Curves
• The Law of Diminishing Marginal Returns
• Mini‐Case Malthus and the Green Revolution
• 5.3 Long‐Run Production
• Isoquants
• Mini‐Case A Semiconductor Isoquant
• Substituting Inputs
• Q&A 5.2
• Using Calculus Cobb‐Douglas Marginal Products
• 5.4 Returns to Scale
• Constant, Increasing, and Decreasing Returns to Scale
• Q&A 5.3
• Mini‐Case Returns to Scale for Crocs
• Varying Returns to Scale
• Managerial Implication Small Is Beautiful
• 5.5 Innovation
• Process Innovation
• Mini‐Case Robots and the Food You Eat
• Organizational Innovation
• Mini‐Case A Good Boss Raises Productivity
• Managerial Solution Labor Productivity During Recessions
• Summary
• Questions
• Chapter 6 Costs
• Managerial Problem Technology Choice at Home Versus Abroad
• 6.1 The Nature of Costs
• Opportunity Costs
• Mini‐Case The Opportunity Cost of an MBA
• Q&A 6.1
• Costs of Durable Inputs
• Sunk Costs
• Managerial Implication Ignoring Sunk Costs
• 6.2 Short‐Run Costs
• Common Measures of Cost
• Using Calculus Calculating Marginal Cost
• Cost Curves
• Production Functions and the Shapes of Cost Curves
• Using Calculus Calculating Cost Curves
• Short‐Run Cost Summary
• 6.3 Long‐Run Costs
• Mini‐Case Short Run Versus Long Run in the Sharing Economy
• Input Choice
• Managerial Implication Cost Minimization by Trial and Error
• Mini‐Case The Internet and Outsourcing
• Q&A 6.2
• The Shapes of Long‐Run Cost Curves
• Mini‐Case Economies of Scale at Google
• Q&A 6.3
• Long‐Run Average Cost as the Envelope of Short‐Run Average Cost Curves
• Mini‐Case Long‐Run Cost Curves in Beer Manufacturing and Oil Pipelines
• 6.4 The Learning Curve
• Mini‐Case Learning by Drilling
• 6.5 The Costs of Producing Multiple Goods
• Mini‐Case Medical Economies of Scope
• Managerial Solution Technology Choice at Home Versus Abroad
• Summary
• Questions
• Appendix 6A Long‐Run Cost Minimization
• Chapter 7 Firm Organization and Market Structure
• Managerial Problem Clawing Back Bonuses
• 7.1 Ownership and Governance of Firms
• Private, Public, and Nonprofit Firms
• Mini‐Case Chinese State‐Owned Enterprises
• Ownership of For‐Profit Firms
• Firm Governance
• 7.2 Profit Maximization
• Profit
• Two Steps to Maximizing Profit
• Using Calculus Maximizing Profit
• Q&A 7.1
• Managerial Implication Marginal Decision Making
• Profit over Time
• Managerial Implication Stock Prices Versus Profit
• 7.3 Owners’ Versus Managers’ Objectives
• Consistent Objectives
• Q&A 7.2
• Conflicting Objectives
• Q&A 7.3
• Mini‐Case Company Jets
• Corporate Social Responsibility
• Monitoring and Controlling a Manager’s Actions
• Takeovers and the Market for Corporate Control
• Mini‐Case The Yahoo! Poison Pill
• 7.4 The Make or Buy Decision
• Stages of Production
• Vertical Integration
• Profitability and the Supply Chain Decision
• Mini‐Case Vertical Integration at Zara
• Mini‐Case Aluminum
• Market Size and the Life Cycle of a Firm
• 7.5 Market Structure
• The Four Main Market Structures
• Comparison of Market Structures
• Road Map to the Rest of the Book
• Managerial Solution Clawing Back Bonuses
• Summary
• Questions
• Appendix 7A Interest Rates, Present Value, and Future Value
• Chapter 8 Competitive Firms and Markets
• Managerial Problem The Rising Cost of Keeping On Truckin’
• 8.1 Perfect Competition
• Characteristics of a Perfectly Competitive Market
• Deviations from Perfect Competition
• 8.2 Competition in the Short Run
• How Much to Produce
• Q&A 8.1
• Using Calculus Profit Maximization with a Specific Tax
• Whether to Produce
• Mini‐Case Fracking and Shutdowns
• Managerial Implication Sunk Costs and the Shutdown Decision
• The Short‐Run Firm Supply Curve
• The Short‐Run Market Supply Curve
• Short‐Run Competitive Equilibrium
• 8.3 Competition in the Long Run
• Long‐Run Competitive Profit Maximization
• The Long‐Run Firm Supply Curve
• Mini‐Case The Size of Ethanol Processing Plants
• The Long‐Run Market Supply Curve
• Mini‐Case Entry and Exit of Solar Power Firms
• Mini‐Case An Upward‐Sloping Long‐Run Supply Curve for Cotton
• Long‐Run Competitive Equilibrium
• Q&A 8.2
• Zero Long‐Run Profit with Free Entry
• 8.4 Competition Maximizes Economic Well‐Being
• Consumer Surplus
• Managerial Implication Willingness to Pay on eBay
• Producer Surplus
• Q&A 8.3
• Q&A 8.4
• Competition Maximizes Total Surplus
• Mini‐Case The Deadweight Loss of Christmas Presents
• Effects of Government Intervention
• Q&A 8.5
• Managerial Solution The Rising Cost of Keeping On Truckin’
• Summary
• Questions
• Chapter 9 Monopoly
• Managerial Problem Brand‐Name and Generic Drugs
• 9.1 Monopoly Profit Maximization
• Marginal Revenue
• Using Calculus Deriving a Monopoly’s Marginal Revenue Function
• Q&A 9.1
• Choosing Price or Quantity
• Two Steps to Maximizing Profit
• Using Calculus Solving for the Profit‐Maximizing Output
• Effects of a Shift of the Demand Curve
• 9.2 Market Power
• Market Power and the Shape of the Demand Curve
• Managerial Implication Checking Whether the Firm Is Maximizing Profit
• Mini‐Case Cable Cars and Profit Maximization
• The Lerner Index
• Mini‐Case Apple’s iPad
• Q&A 9.2
• Sources of Market Power
• 9.3 Market Failure Due to Monopoly Pricing
• Q&A 9.3
• 9.4 Causes of Monopoly
• Cost‐Based Monopoly
• Q&A 9.4
• Government Creation of Monopoly
• Mini‐Case The Canadian Medical Marijuana Market
• Mini‐Case Botox
• 9.5 Advertising
• Deciding Whether to Advertise
• How Much to Advertise
• Using Calculus Optimal Advertising
• Q&A 9.5
• Mini‐Case Super Bowl Commercials
• 9.6 Networks, Dynamics, and Behavioral ‐Economics
• Network Externalities
• Network Externalities and Behavioral Economics
• Network Externalities as an Explanation for Monopolies
• Mini‐Case Critical Mass and eBay
• Managerial Implication Introductory Prices
• Managerial Solution Brand‐Name and Generic Drugs
• Summary
• Questions
• Chapter 10 Pricing with Market Power
• Managerial Problem Sale Prices
• 10.1 Conditions for Price Discrimination
• Why Price Discrimination Pays
• Mini‐Case Disneyland Pricing
• Which Firms Can Price Discriminate
• Managerial Implication Preventing Resale
• Mini‐Case Preventing Resale of Designer Bags
• Not All Price Differences Are Price Discrimination
• Types of Price Discrimination
• 10.2 Perfect Price Discrimination
• How a Firm Perfectly Price Discriminates
• Perfect Price Discrimination Is Efficient but Harms Some Consumers
• Mini‐Case Botox Revisited
• Q&A 10.1
• Individual Price Discrimination
• Mini‐Case Google Uses Bidding for Ads to Price Discriminate
• 10.3 Group Price Discrimination
• Group Price Discrimination with Two Groups
• Using Calculus Maximizing Profit for a Group Discriminating Monopoly
• Q&A 10.2
• Identifying Groups
• Managerial Implication Discounts
• Effects of Group Price Discrimination on Total Surplus
• 10.4 Nonlinear Price Discrimination
• 10.5 Two‐Part Pricing
• Two‐Part Pricing with Identical Consumers
• Two‐Part Pricing with Differing Consumers
• Mini‐Case Available for a Song
• 10.6 Bundling
• Pure Bundling
• Mixed Bundling
• Q&A 10.3
• Requirement Tie‐In Sales
• Managerial Implication Ties That Bind
• 10.7 Peak‐Load Pricing
• Mini‐Case Downhill Pricing
• Managerial Solution Sale Prices
• Summary
• Questions
• Chapter 11 Oligopoly and Monopolistic Competition
• Managerial Problem Gaining an Edge from Government Aircraft Subsidies
• 11.1 Cartels
• Why Cartels Succeed or Fail
• Mini‐Case The Apple‐Google‐Intel‐Adobe‐Intuit‐Lucasfilm‐Pixar Wage Cartel
• Maintaining Cartels
• Mini‐Case Cheating on the Maple Syrup Cartel
• 11.2 Cournot Oligopoly
• Airlines
• Using Calculus Deriving a Cournot Firm’s Marginal Revenue
• The Number of Firms
• Mini‐Case Mobile Phone Number Portability
• Nonidentical Firms
• Q&A 11.1
• Q&A 11.2
• Managerial Implication Differentiating a Product Through Marketing
• Mergers
• Mini‐Case Acquiring Versus Merging
• 11.3 Bertrand Oligopoly
• Identical Products
• Differentiated Products
• 11.4 Monopolistic Competition
• Managerial Implication Managing in the Monopolistically Competitive Food Truck Market
• Equilibrium
• Q&A 11.3
• Profitable Monopolistically Competitive Firms
• Mini‐Case Zoning Laws as a Barrier to Entry by Hotel Chains
• Managerial Solution Gaining an Edge from Government Aircraft Subsidies
• Summary
• Questions
• Appendix 11A Cournot Oligopoly with Many Firms
• Appendix 11B Nash‐Bertrand Equilibrium
• Chapter 12 Game Theory and Business Strategy
• Managerial Problem Dying to Work
• 12.1 Oligopoly Games
• Dominant Strategies
• Best Responses
• Failure to Maximize Joint Profits
• Mini‐Case Strategic Advertising
• Q&A 12.1
• 12.2 Types of Nash Equilibria
• Multiple Equilibria
• Mini‐Case Timing Radio Ads
• Mixed‐Strategy Equilibria
• Mini‐Case Competing E‐Book Formats
• Q&A 12.2
• 12.3 Information and Rationality
• Incomplete Information
• Managerial Implication Solving Coordination Problems
• Rationality
• Managerial Implication Using Game Theory to Make Business Decisions
• 12.4 Bargaining
• Bargaining Games
• The Nash Bargaining Solution
• Q&A 12.3
• Using Calculus Maximizing the Nash Product
• Mini‐Case Nash Bargaining over Coffee
• Inefficiency in Bargaining
• 12.5 Auctions
• Elements of Auctions
• Bidding Strategies in Private‐Value Auctions
• Mini‐Case Experienced Bidders
• The Winner’s Curse
• Managerial Implication Auction Design
• Managerial Solution Dying to Work
• Summary
• Questions
• Chapter 13 Strategies over Time
• Managerial Problem Intel and AMD’s Advertising Strategies
• 13.1 Repeated Games
• Strategies and Actions in Dynamic Games
• Cooperation in a Repeated Prisoner’s Dilemma Game
• Mini‐Case Tit‐for‐Tat Strategies in Trench Warfare
• Implicit Versus Explicit Collusion
• Finitely Repeated Games
• 13.2 Sequential Games
• Stackelberg Oligopoly
• Credible Threats
• Q&A 13.1
• 13.3 Deterring Entry
• Exclusion Contracts
• Mini‐Case Pay‐for‐Delay Agreements
• Limit Pricing
• Mini‐Case Pfizer Uses Limit Pricing to Slow Entry
• Q&A 13.2
• Entry Deterrence in a Repeated Game
• 13.4 Cost and Innovation Strategies
• Investing to Lower Marginal Cost
• Learning by Doing
• Raising Rivals’ Costs
• Q&A 13.3
• Mini‐Case Auto Union Negotiations
• 13.5 Disadvantages of Moving First
• The Holdup Problem
• Mini‐Case Venezuelan Nationalization
• Managerial Implication Avoiding Holdups
• Too‐Early Product Innovation
• Mini‐Case Advantages and Disadvantages of Moving First
• 13.6 Behavioral Game Theory
• Ultimatum Games
• Mini‐Case GM’s Ultimatum
• Levels of Reasoning
• Managerial Implication Taking Advantage of ‐Limited Strategic Thinking
• Managerial Solution Intel and AMD’s ‐Advertising Strategies
• Summary
• Questions
• Appendix 13A A Mathematical Approach to Stackelberg Oligopoly
• Chapter 14 Managerial Decision Making Under Uncertainty
• Managerial Problem BP’s Risk and Limited Liability
• 14.1 Assessing Risk
• Probability
• Expected Value
• Q&A 14.1
• Variance and Standard Deviation
• Managerial Implication Summarizing Risk
• 14.2 Attitudes Toward Risk
• Expected Utility
• Risk Aversion
• Q&A 14.2
• Using Calculus Diminishing Marginal Utility of Wealth
• Mini‐Case Stocks’ Risk Premium
• Risk Neutrality
• Risk Preference
• Mini‐Case Gambling
• Risk Attitudes of Managers
• 14.3 Reducing Risk
• Obtaining Information
• Mini‐Case Bond Ratings
• Diversification
• Managerial Implication Diversify Your Savings
• Insurance
• Q&A 14.3
• Mini‐Case Limited Insurance for Natural Disasters
• 14.4 Investing Under Uncertainty
• Risk‐Neutral Investing
• Risk‐Averse Investing
• Q&A 14.4
• 14.5 Behavioral Economics and Uncertainty
• Biased Assessment of Probabilities
• Mini‐Case Biased Estimates
• Violations of Expected Utility Theory
• Prospect Theory
• Managerial Implication Loss Aversion Contracts
• Managerial Solution BP’s Risk and Limited Liability
• Summary
• Questions
• Chapter 15 Asymmetric Information
• Managerial Problem Limiting Managerial Incentives
• 15.1 Adverse Selection
• Adverse Selection in Insurance Markets
• Products of Unknown Quality
• Q&A 15.1
• Q&A 15.2
• Mini‐Case Reducing Consumers’ Information
• 15.2 Reducing Adverse Selection
• Restricting Opportunistic Behavior
• Equalizing Information
• Managerial Implication Using Brand Names and Warranties as Signals
• Mini‐Case Discounts for Data
• Mini‐Case Adverse Selection and Remanufactured Goods
• 15.3 Moral Hazard
• Moral Hazard in Insurance Markets
• Moral Hazard in Principal‐Agent Relationships
• Mini‐Case Selfless or Selfish Doctors?
• Q&A 15.3
• 15.4 Using Contracts to Reduce Moral Hazard
• Fixed‐Fee Contracts
• Contingent Contracts
• Mini‐Case Sing for Your Supper
• Q&A 15.4
• 15.5 Using Monitoring to Reduce Moral Hazard
• Hostages
• Mini‐Case Capping Oil and Gas Bankruptcies
• Managerial Implication Efficiency Wages
• After‐the‐Fact Monitoring
• Managerial Solution Limiting Managerial Incentives
• Summary
• Questions
• Chapter 16 Government and Business
• Managerial Problem Licensing Inventions
• 16.1 Market Failure and Government Policy
• The Pareto Principle
• Cost‐Benefit Analysis
• 16.2 Regulation of Imperfectly Competitive Markets
• Regulating to Correct a Market Failure
• Q&A 16.1
• Mini‐Case Natural Gas Regulation
• Regulatory Capture
• Applying the Cost‐Benefit Principle to Regulation
• 16.3 Antitrust Law and Competition Policy
• Mergers
• Mini‐Case Are Monopoly Mergers Harmful?
• Predatory Actions
• Vertical Relationships
• Mini‐Case Piping Up about Exclusive Dealing
• 16.4 Externalities
• The Inefficiency of Competition with ‐Externalities
• Reducing Externalities
• Mini‐Case Pulp and Paper Mill Pollution and Regulation
• Q&A 16.2
• Mini‐Case Why Tax Drivers
• The Coase Theorem
• Managerial Implication Buying a Town
• 16.5 Open‐Access, Club, and Public Goods
• Open‐Access Common Property
• Mini‐Case Spam
• Club Goods
• Mini‐Case Piracy
• Public Goods
• 16.6 Intellectual Property
• Patents
• Q&A 16.3
• Managerial Implication Trade Secrets
• Copyright Protection
• Managerial Solution Licensing Inventions
• Summary
• Questions
• Chapter 17 Global Business
• Managerial Problem Responding to Exchange Rates
• 17.1 Reasons for International Trade
• Comparative Advantage
• Q&A 17.1
• Managerial Implication Brian May’s Comparative Advantage
• Increasing Returns to Scale
• Mini‐Case Barbie Doll Varieties
• 17.2 Exchange Rates
• Determining the Exchange Rate
• Exchange Rates and the Pattern of Trade
• Managerial Implication Limiting Arbitrage and Gray Markets
• Managing Exchange Rate Risk
• 17.3 International Trade Policies
• Quotas and Tariffs in Competitive Markets
• Mini‐Case Russian Food Ban
• Q&A 17.2
• Rent Seeking
• Noncompetitive Reasons for Trade Policy
• Mini‐Case Dumping and Countervailing Duties for Solar Panels
• Trade Liberalization and the World Trading System
• Trade Liberalization Problems
• 17.4 Multinational Enterprises
• Becoming a Multinational
• Mini‐Case What’s an American Car?
• International Transfer Pricing
• Q&A 17.3
• Mini‐Case Profit Repatriation
• 17.5 Outsourcing
• Managerial Solution Responding to Exchange Rates
• Summary
• Questions
• Answers to Selected Questions
• Definitions
• References
• Sources for Managerial Problems, Mini‐Cases, and Managerial Implications
• Index
• Credits