Table of Contents
(All chapters, except Chapter 1, contain Exercises and Problems.)
1. Economics and Institutions: A Shift of Emphasis.
2. Consumers and Their Preferences.
3. Demand and Behavior in Markets.
Appendix A: The Demand Curve.
Appendix B: The Expenditure Function.
Appendix C: Price-Compensating Variations.
4. The Problem of Exchange.
Appendix A: The Shrinking of the Core.
Appendix B: Pareto Optima and the Contract Curve.
Appendix C: Competitive Equilibrium and Pareto Optimality.
5. The Discovery of Production and Its Technology.
Appendix A: The Production Function.
6. Cost and Choice.
Appendix A: The Cost Function.
7. Game Theory and the Tools of Strategic Business Analysis.
Appendix A: Games of Incomplete Information.
Appendix B: Repeated Games.
8. The Internal Organization of the Firm.
9. The Age of Entrepreneurship: Monopoly.
Appendix A: The Monopoly Problem.
Appendix B: Price Discrimination.
10. Natural Monopoly and the Economics of Regulation.
Appendix A: The Allocation of Common Costs: Cross-Subsidization.
Appendix B: Franchise Monopoly.
11. The World of Oligopoly: Preliminaries to Successful Entry.
Appendix A: Nash Equilibrium in Duopoly.
Appendix B: Implicit Collusion and Repeated Games.
12. Market Entry and the Emergence of Perfect Competition.
Appendix A: Incomplete Information and Entry Prevention.
13. Perfectly Competitive Markets.
Appendix A: Two Welfare Propositions.
14. Uncertainty and the Emergence of Insurance.
15. General Equilibrium and the Origins of the Free-Market and Interventionist Ideologies.
16. Moral Hazard and Adverse Selection: Informational Market Failures.
17. Externalities: The Free Market—Interventionalist Battle Continues.
Appendix A: Excess Production Under Externalities.
18. Public Goods, the Consequences of Strategic Voting Behavior, and the Role of Government.
19. Input Markets and the Origins of Class Conflict.
Answers to Selected Exercises and Problems.
Index.
