(8th edition) (the pearson series in economics) robert pindyck, daniel rubinfeld microecon 758

INDEX • 733
probabilities and uncertainty, 195
reference point and, 190–191
rule-of-thumb and, 194–195
Beijing sulfur dioxide emissions, 672–673
Bell, Frederick W., 689n22
Berliner, Diane T., 622n9
Berndt, Ernst R., 433n23
Berry, Steven, 89n8
Bertrand, Joseph, 465
Bertrand model, 465–466
“Best fit” criterion, 701
Bicycle markets, 11–12
Bidding, collusion and, 521
Bilateral monopoly, 388
Blackley, Dixie M., 313n10
Blair, Roger D., 327n5
Block pricing, 404
BMW, 426
Boeing, 513–514
Bonds
cash flow value from, 565
definition of, 564
effective yield on, 566–567
perpetuities, 565–566
value of, 564–569
Bonus-payment systems, 651
Boskin, Michael, 105n15
Boyle, Robert, 6n2
Bram, Jason, 32n5
Braniff Airways, 392–393

Brealey, Richard, 574n12
Brownell, K.D., 370n6
Bryan, Michael F., 105n17
Bubbles, 185–189
Budget constraints, 82–86
Budget line, 82–84
definition of, 82
income changes and, 84
market baskets and, 83
Bundling, 419–429
mixed vs. pure bundling, 423–426
in practice, 426–427
relative valuations and, 420–423
tying and, 428–429
zero marginal costs and, 425
Burrows, James, 297n5
Business executives, risk choice and, 169–170
Business school, value of, 582–584
Buyer interaction, monopsony and, 387
Buyer numbers, monopsony and, 387

C
Cable television, bundling and, 426
CAFE (Corporate Average Fuel
Economy), 17
Camerer, Colin, 189n23, 196n34
Capacity constraints, 45
Capital
company cost of, 576
price of, 244

rental rate of, 244–245
Capital asset pricing model, 575–576
Capital gain, 177

Capital-intensive technology, 221
Capital investment
discount rate and, 569
negative future cash flows and, 572
net present value criterion for, 569–573
opportunity cost of capital, 570
real vs. nominal discount rates
and, 571–572
Capital loss, 177
Card, David, 16n8, 549n7
Cardinal utility function, 80
Carpet industry, returns to scale in,
225–226
Cartels, 477–482
analyzing CIPEC, 479–480
analyzing OPEC, 478–479
conditions for success of, 478
definition of, 452
monopoly power and, 478
price analysis and, 478–480
Case-Shiller Housing Price Index, 186, 188
Cash flows, negative future, 572
Caulkins, Jonathan P., 673n7
Ceiling prices, 58, 319
Cellular phone service pricing, 417–419
Centner, Terence J., 645n8

CEO compensation, 647–648
Cereal, ready-to-eat, 142
Chain-weighted price index, 104
Chandler, Alfred Jr., 202n1
Chay, Kenneth Y., 135n9
Chemical processing industry, learning
curve and, 264–265
China Mobile, 417, 418
Chinese housing bubble, 187
Christensen, Laurits, 268n19
Christie’s auction house, 521, 522
Chrystal, K. Alec, 622n9
Cigliano, Joseph M., 536n2
Cinemax, 426
Civil Aeronautics Board (CAB), 330
Clayton Act (1914), 390
Clean Air Act, 134–135, 674
Clinton Corn Processing Company, 10
Coal, demand for (multiple regression
analysis), 706–707
Coase, Ronald, 203n2, 685n20, 691n23
Coase theorem, 685, 687
Cobb-Douglas production function, 276–278
Cobb-Douglas utility function, 153
Coffee markets
monopolistic competition in, 455–456
weather conditions and pricing, 46–48
Cohen, Alma, 648n15
Cola markets, monopolistic competition in,
455–456

College education
costs of, 13–14, 28
net present value of, 581
College trust funds, 92
Collusion, 469–472, 521
Commercial airlines. See Airline/aircraft
industries

Commercial banking, price rigidity and
leadership in, 475
Commercial paper rate, 590
Commercial real estate, September 11
effects on, 31–32
Commitment, credibility and, 506–508
Common property resources, 687–690
Common-value auctions, 518, 519–520
Company cost of capital, 576
Comparative advantage, 618–619
Compensation, executive, 647–648
Competition Directorate, 392
Competition vs. collusion, 469–472
Competitive buyer, competitive seller
compared, 383
Competitive equilibrium, 301–304, 607–609
Competitive firms. See also Profit
maximization
demand and marginal revenue for,
285–287
economic rent and, 304–305
incurring losses and, 289

input price changes and, 293–294
long-run equilibrium and, 301–304
long-run profit maximization and,
300–301
long-run supply and, 306–314
producer surplus in long run and,
305–306
producer surplus in short run and,
298–300
profit maximization by, 287
short-run profit maximization by,
287–289
short-run supply curve and, 292–295
Competitive markets
consumer and producer surplus and,
318–323
consumer equilibrium and, 607–609
deadweight loss and, 321
economic efficiency of, 323–328,
609–610
efficiency of, 623–625
failure and, 625–627
government policies and, 317–323
incentive programs and, 334–335
market failure and, 323–325
minimum prices and, 328–331
perfectly competitive markets, 279–281
price supports and, 332–339
production quotas and, 333–338
supply in, 537–539

taxes or subsidies and, 345–351
welfare loss and, 324
Complementary goods, 24–25, 118–119
Completely inelastic demand, 34, 35
Completeness, consumer preferences
and, 70
Computers
production costs of, 235–236
wage inequality and, 554–555
Concentration ratio, 376n10
Condominiums, 283–284