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(8th edition) (the pearson series in economics) robert pindyck, daniel rubinfeld microecon 759

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734 • INDEX
Congleton, Roger D., 379n12
Constant-cost industries, 307–308
Constant returns to scale, 223
Constant sum game,488n2
Constrained optimization, 149
Consumer behavior. See also Consumer
preferences
assumptions and, 68–70
budget constraints and, 82–86
consumer choice and, 86–92
consumer preferences, 69–82
corner solutions and, 89–90
cost-of-living indexes and, 100–105
marginal utility and consumer
choice, 95–100
price supports and, 332
revealed preference and, 92–95
steps and, 68
theory of, 67–68
trade-offs and, 4
Consumer choice, 86–92
Consumer expenditures
price elasticity and, 126–128
in United States, 117–118
Consumer groups, creation of, 405–406
Consumer investment decisions, 578–580
Consumer preferences, 69–82. See also
Consumer behavior
basic assumptions about, 70
completeness and, 70


fairness and, 192–194
framing, 191
health care choices, 90–91
indifference curves and, 71–72
indifference maps and, 72–73
marginal rate of substitution and, 74–75
market baskets and, 69–70
more vs. less and, 70
perfect substitutes and perfect
complements and, 75–77
reference points and, 190–191
transitivity and, 70
Consumer Price Index (CPI), 12, 100, 105
Consumer satisfaction maximization,
86–88
Consumer surplus, 132–135, 318–323
application of, 134
capturing, 400–401
change in, 319–320
demand and, 132–134
generalized, 133
Consumption decisions. See also Bundling
products bundled, 421
products sold separately, 421
Contract curve, 606–607
Convenience stores
advertising and, 432–433
markup pricing and, 372–373
Cooper, John C. B., 55n18
Cooperative games, 488–489

Cooperatives, 283–284
Cooter, Robert, 685n19
Cootner, Paul H., 46n12

Copper
price of, 29–30, 52–54
short-run world supply of, 297–298
supply and demand for, 53
supply of, 45–46
Copyrights, 376
Corner solutions, 89–90
Corporate bonds
versus prime rate, 475
rates and, 590
yields on, 567–569
Corporate takeovers, 646
Corts, Kenneth S., 241n5
Cost-benefit comparison, 640–641
Cost constraints, production and, 202
Cost curves, 238–240
Cost functions, 265–269
Cost minimization, 249–250, 273–274
Cost-of-living adjustments, 102
Cost-of-living indexes, 100–105
chain weighting and, 104
ideal, 101–102
Laspeyres index, 102–103
Paasche index, 103–104
Cost-reducing innovation, 515
Costs. See Production costs

Cost theory, duality in, 275–276
Coughlin, Cletus, 622n9
Coupons, economics of, 408–409
Cournot, Augustin, 458
Cournot equilibrium, 460–461, 464–465
Cournot model, 458–461
equilibrium in, 460–461
linear demand curve and, 461–463
reaction curves and, 460
Cournot-Nash equilibrium, 460
Cramer, Gail L., 343n13
Crandall, Robert, 392, 502
Crawfish fishing in Louisiana, 689–690
Credibility, 506–508
Credit market, adverse selection and, 635
Cremers, Martjin, 648n14
Crime deterrence, 164–165
Cross-price elasticity of demand, 35
Crude oil, price of, 55
Cubic cost function, 267
Customer preferences
ordinal vs. cardinal utility, 80
utility functions and, 79–80
Cyclical industries, 41–43

D
Dahl, Carol, 44n11
Deadweight loss
definition of, 321
from monopoly power, 378

from monopsony power, 387
taxes and, 346
Deaton, Angus, 98n11
Decision making, 163–164
Decision making biases, 194–195
Decreasing-cost industries, 309
Decreasing returns to scale, 223

Dedrick, Jason, 621n8
Deere, Donald, 550n8
Degree of economies of scope, 259–260
De La Torre Ugarte, Daniel G., 39n9
Dell, 8, 235
Delta Air Lines, 234, 243
Demand. See also Demand curves; Supply
and demand
competitive firms and, 285–287
consumer surplus and, 132–134
cyclical industries and, 41–43
durability and, 40–41
elasticity of, 126–127
income elasticities and, 40–43
short-run vs. long-run elasticities, 39–48
speculative, 129
Demand curves, 23–25. See also Supply and
demand; Individual demand
competitive firms and, 285–288
complementary goods and, 24–25
individual demand curves, 112–114
market demand curves, 124–132

monopolies and, 365
shifting of, 24
substitute goods and, 24–25
Demand estimation, 139–143
demand relationship form and, 140–142
interview and experimental approaches
to, 143
statistical approach to, 139–140
Demand for loanable funds, 588
Demand shifts, monopolies and, 365–366
Demand theory, 149–157
Cobb-Douglas utility function and, 153
duality in consumer theory and,
154–155
equal margin principle, 151
income and substitution effects and,
155–157
marginal rate of substitution and,
151–152
marginal utility of income and, 152
method of Lagrange multipliers and,
150–151
utility maximization and, 149–150
Department of Justice Antitrust Division,
391, 394
Depletable resources, 584–587
Deposits, refundable, 677
Depreciation, 243–244
Deregulation, 330–331
Derived demands, 530

Dermisi, Sofia, 32n6
Developed countries, labor productivity
in, 215
Deviations, risk and, 161–163
Diaper wars, 515–516
Differentiated products, price competition
and, 465–467
Diminishing marginal returns, 217–219
Diminishing marginal utility, 95
Direct marketing experiments, 143
Discount bonds, 589



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