(8th edition) (the pearson series in economics) robert pindyck, daniel rubinfeld microecon 757

Index
A
Abadie, Alberto, 3n6
Absolute advantage, 618–619
Accounting costs, 230
Accounting profit, long-run competitive
equilibrium and, 301–302
Ackerman, Frank, 677n12
Acreage limitation programs, 334
Actual returns, 178
Actuarial fairness, 172–173
Adams, Frank A., III, 327n4
Ad valorem tax, 345
Adverse selection, 634
Advertising, 429–433
effects of, 430
elasticity of demand and, 431
in practice, 432–433
rule of thumb for, 431–432
Advertising game, 491
Advertising-to-sales ratio, 431
Agency relationships, 645–651
Aggregate demand, 128–129
Agostini, Claudio, 51n15
Airbus, 513–514
Airline/aircraft industries
competition and collusion in, 501–502
jet fuel demand and, 536–537
learning curves and, 265
price discrimination and fares, 409–410
regulation and, 330–331

strategic policy and, 512–514
Akerlof, George A., 194n29, 632n1
Allen, Mike, 337n9
Allocations, efficient, 604–606
Aluminum smelting
short-run cost of, 240–242
short-run output of, 290–291
American Airlines, 392–393, 501–502
Amortization, 234–235
Anchoring, 194–195
Andreyeva, T., 370n6
Animal health warranties, 645
Antitrust laws, 389–395
anticompetitive conduct and, 391
Antitrust Division of Department
of Justice and, 391
enforcement of, 391–392
in Europe, 392
Federal Trade Commission and,
391, 392
illegal combinations and, 389–390
parallel conduct and, 390

732

predatory pricing and, 390
private proceedings and, 391
Apple, 8, 390
Apple iPod, 621–622
Arbitrage, definition of, 8

Arc elasticity of demand, 36–37
Archer Daniels Midland Company, 10,
379, 393
Asset beta, 575
Asset returns, 177–179
Assets
definition of, 176
expected vs. actual returns, 178
risky and riskless, 177
Astra-Merck, 364–365
Asymmetric information
adverse selection and, 634
cost-benefit comparison, 640–641
efficiency wage theory and, 654–656
equilibrium, 640
guarantees and warranties, 642
implications of, 634–635
integrated firms and, 652–654
labor markets and, 654–656
managerial incentives and, 652–654
market signaling and, 638–643
moral hazard and, 643–645
principal-agent problem, 645–651
quality uncertainty and, 632–638
reputation and, 636
standardization and, 636
AT&T, 417–419
Auction markets, defined, 516
Auctions, 516–524
bidding and collusion and, 521

common-value auctions, 519–520
formats, 517
Internet, 522–524
legal services and, 522
maximizing auction revenue, 520–521
private-value auctions, 517–518
valuation and information and, 517–518
winner’s curse and, 519–520
Automobile industry. See also specific
companies
choosing new car, 579–580
demand and, 40–45
design and, 77–78, 88–89
emission standards and, 17–18
hybrid cars, 16
product differentiation and, 452
variable cost curve and, 266

Autor, David H., 554n10
Average costs, 239
Average expenditure
curve, 537, 546, 547
definition of, 383
monopsony power and, 546–547
Average fixed costs, 237
Average products
of labor curve, 209
production process and, 206–207
relationship with marginal
products, 209

Average revenue, monopoly and,
358–359
Average total costs, 237
Average variable costs, 237, 291–292
Axelrod, Robert, 498n9

B
Babock, Linda, 196n34
Backward-bending supply of labor, 539
Badger Meter, 501
Bads (goods), 76–77
Bailey, Elizabeth, 675n10
Baily, Martin N., 46n12
Bajari, Patrick, 522n22
Baker, Jonathan B., 142n12
Bandwagon effect, 136
Bankruptcies, recent rise in, 282
Banzhaf, Spencer, 665n2
Bargaining
Coase theorem and, 685, 687
economic efficiency and, 685–686
strategy and, 508–509, 685
Bargaining power, 548
Barlow, Connie C., 59n22
Barnes, James, 39n9
Barnett, A. H., 327n4
Barney, Dwane L., 327n4
Barriers to entry, 376
Baseball. See Major league baseball
BASF A.G. of Germany, 393

Battle of the sexes game, 497–498
Baye, Michael, 175n8
Beach location game, 493–494
Bebchuk, Lucian A., 648n14–15
Becker, Gary S., 164n5
Behavioral economics, 67–69, 189–197
anchoring and, 194–195
decision making biases and, 194–195
endowment effect and, 190–191
loss aversion and, 191