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Intermediate microeconomics : A modern approach

01 Jan 2006-
TL;DR: The Varian approach as mentioned in this paper gives students tools they can use on exams, in the rest of their classes, and in their careers after graduation, and is still the most modern presentation of the subject.
Abstract: This best-selling text is still the most modern presentation of the subject. The Varian approach gives students tools they can use on exams, in the rest of their classes, and in their careers after graduation.
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Journal ArticleDOI
12 Jan 2019
TL;DR: In this article, the authors compare the levels of satisfaction between entrepreneurs and subordinados, finding that entrepreneurs declare less satisfaction with life and with health than subordinates, while subordinado declare more satisfaction with their job satisfaction.
Abstract: The objective of the research is to compare the levels of satisfaction between entrepreneurs and subordinates. For the study, data from the Self-Reported Welfare Survey (Biare) of 2014 are used. The work method is a statistical exploration of the data on entrepreneurs. The results suggest that there is no significant difference between the levels of job satisfaction of the two groups. A relevant finding is that entrepreneurs declare less satisfaction with life and with health than subordinates. This may be related to the fact that the owners of SMEs have high workloads with repercussions on their health. Among the limitations of the study is that the survey was prepared by INEGI and not by the researchers, given that it was not possible to incorporate some questions. The originality of the work lies in being a pioneer in the study of entrepreneurs about their subjective well-being.RESUMENEl objetivo de la investigacion es contrastar los niveles de satisfaccion personal entre emprendedores y subordinados. Para el estudio se emplean datos de la Encuesta de Bienestar Autorreportado (Biare) del 2014. El metodo del trabajo es una exploracion estadistica de los datos sobre emprendedores. Los resultados apuntan a que no existe diferencia significativa entre los niveles de satisfaccion laboral de los dos grupos. Un hallazgo relevante es que los emprendedores declaran menor satisfaccion con la vida y con la salud que los subordinados. Ello puede relacionarse con que los duenos de Pymes tienen elevadas cargas de trabajo con repercusiones en su salud. Entre las limitaciones del estudio se encuentra que la encuesta fue elaborada por INEGI y no por los investigadores, dado lo cual no fue posible incorporar algunos cuestionamientos. La originalidad del trabajo radica en ser pionero en el estudio de los emprendedores en referencia a su bienestar subjetivo.RESUMOO objetivo da pesquisa e comparar os niveis de satisfacao pessoal entre empreendedores e subordinados. Para o estudo, sao utilizados dados do Self-Reported Welfare Survey (Biare) de 2014. O metodo de trabalho e uma exploracao estatistica dos dados sobre empreendedores. Os resultados sugerem que nao ha diferenca significativa entre os niveis de satisfacao no trabalho dos dois grupos. Uma descoberta relevante e que os empresarios declaram menos satisfacao com a vida e com a saude do que os subordinados. Isso pode estar relacionado ao fato de que os proprietarios de PMEs tem altas cargas de trabalho com repercussoes em sua saude. Entre as limitacoes do estudo, a pesquisa foi elaborada pelo INEGI e nao pelos pesquisadores, uma vez que nao foi possivel incorporar algumas questoes. A originalidade do trabalho esta em ser pioneira no estudo de empreendedores em referencia ao seu bem-estar subjetivo.

5 citations

Journal ArticleDOI
TL;DR: In this paper, it is argued that in the specific case of environmental policy, the initial assignment of rights will seriously affect the final allocation of resources, and the methodological distinction between negligible, domain and heuristic assumptions and the elaboration of a 'logical time' of the Coase Theorem are crucial to understand why eventually the coase theorem should not be applied to the realm of environmental law and policy.
Abstract: The so-called Coase Theorem is one of the cornerstones of the Law and Economics approach. This paper investigates whether it is appropriate to apply the Coasean framework in the context of Environmental Law and Economics. Even when transaction costs are zero, it is argued that in the specific case of environmental policy the initial assignment of rights will seriously affect the final allocation of resources. To support this thesis empirical evidence backed up by theoretical explanations are presented. The methodological distinction between negligible, domain and heuristic assumptions and the elaboration of a ‘logical time’ of the Coase Theorem are crucial to understand why eventually the Coase Theorem should not be applied to the realm of environmental law and policy.

5 citations

Dissertation
01 Nov 1997
TL;DR: In this article, a two-stage, endogenous learning Stackelberg model is proposed for technology adoption, contracts and protection, and the optimal protection forms, protection rates and protection lengths under various cost and revenue circumstances.
Abstract: This thesis consists of three individual models on technology adoption, contracts and protection. The first model is motivated by the inconsistency between empirical results and theoretical models regarding the firm size effects upon the timing of adoption. By proposing a two-stage, endogenous learning, Stackelberg model, we conclude that in a pure strategy equilibrium, the large firm may or may not tacitly delay its adoption to capture the information advantage, depending on cost and belief parameters. The welfare analysis provides a justification for government interventions in firms’ adoption decisions. The second model is motivated by the fact that although more and more resources have been devoted to R&D activities, there is little theoretical discussion regarding R&D funding issues. Chapter 3 derives the optimal funding contract, which happens to be a cost-plus-fixed-fee contract in the literature. After considering the adverse selection problem, the optimal contract induces no efficiency loss under both discrete and continuous settings and the principal will be more conservative in funding. The optimal auction maintains both allocation and production efficiency, and bidding the principal’s reservation price will be a dominant strategy in a second price auction. Neither the revenue equivalence nor the separation property will hold. With symmetric beliefs, the optimal funding length is shorter than that of contractible effort. Under some assumptions, the lock-in effect persists and the principal will prefer short-term contracts to long-term contracts. The third model decides the optimal protection forms, protection rates and protection lengths under various cost and revenue circumstances. Since the incentive scheme will be affected by the target firm’s future profits, we show that in the context of incomplete information, screening protection schemes can sometimes coincide with the efficient schemes. In R&D area, our result suggests that optimal patent length need not necessarily be increasing in firm’s investment efficiency.

5 citations


Cites background or methods from "Intermediate microeconomics : A mod..."

  • ...For example, “A commonly observed pattern of behaviour is for smaller firms in the computer industry to wait for IBM’s announcement of new products, and then adjust their own product decisions accordingly” (Varian (1987), p. 458)....

    [...]

  • ...Therefore, we follow the reasoning by Varian (1987) and use a Stackelberg setting to depict the market structure with different firm sizes....

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Journal Article
TL;DR: In this article, the authors apply micro-economic analysis to discuss the problem of optimal product quality (e.g. lifetime) in terms of cost-benefit-analysis and under imperfect information (based on Akerlof's lemon problem).
Abstract: One of the negative side effects of the consumer society and the increasing number of consumer goods available to the average household is the intransparency of product quality, especially product lifetime. There are many examples on failing products and premature obsolescence. Often this phenomenon is related to companies’ profit maximization strategies (planned obsolescence) and consumer protection policy is mobilized to stop this type of exploitation. The paper applies micro-economic analysis to discuss the problem of optimal product quality (e.g. lifetime) in terms of cost-benefit-analysis and under imperfect information (based on Akerlof’s lemon problem). Given consumers’ actual willingness to pay there is an optimal quality which is lower than the technically possible. If the innovation perspective (Schumpeter’s “creative destruction”) is added to the analysis, increasing global competition and speed of product innovation are identified as core drivers for shorter product lifecycles and tend to be the actual limiting factor of product lifetime (economic vs. technical obsolescence). Even if the goals of sustainable development are included in the analysis, this does not provide an unambiguous argument for long-life products as new products tend to be more eco-efficient. A broader discussion on optimal quality (lifetime) of products is necessary, based on holistic life-cycle assessment of alternative product quality options. And finally: The tendency of increasing aftersales disappointment of consumers’ expectations and conflicts with sustainable development goals need to be addressed in a more general debate on (limits of) consumerism. Minor changes in the laws for protecting consumers (e.g. longer warranty) will not do the job. Keywords: Obsolescence, innovation, quality competition, imperfect information, sustainable development, life-cycle analysis

5 citations

Dissertation
01 Jan 2008
TL;DR: In this article, the authors focus on trade-offs between production of timber and the maintenance of biodiversity in forests, and the effects of information on benefits, costs and biological traits.
Abstract: For a long time the primary aim of forestry in Sweden has been the production of timber, but in recent decades other functions, such as biodiversity, have been increasingly recognised by society. Sweden has ambitious goals for forest management, aimed at serving public interests, providing valuable timber yields and preserving biodiversity. Achieving the level of various goods that forests shall provide, under such goals, is thus rather complex. This thesis focuses on trade-offs between production of timber and the maintenance of biodiversity in forests, and the effects of information on benefits, costs and biological traits. In Paper I the benefit of forest land protection was estimated based on a nation wide contingent valuation survey. Paper II examined and compared, through survey data, the attitudes among private forest owners and forest officers. Papers III and IV used data from a field inventory in old growth forests (>110 years of age) of Norway spruce (Picea abies [L.] Karst.) in the county of Gavleborg, Sweden. In Paper III the relative importance of information about costs and biological traits in reserve selection was examined. In Paper IV the cost-efficiency of different strategies for setting aside forests, using different biodiversity targets, were analysed. The thesis revealed a positive willingness to pay for forest land protection among Swedish citizens, and also a positive attitude among private forest owners to biodiversity as well as timber production. The views of forest owners and forest officers did not always coincide. Moreover, the relative importance of including data on costs and conservation benefits depended on how the conservation goal of the reserve network was formulated. There was also a difference in cost-effectiveness between different nature conservation strategies and biodiversity targets. The results emphasise the importance of achieving cost-effective solutions in biodiversity conservation through the proper use of information about biological traits and costs, as well as considering values and attitudes held by different interest groups in society.

5 citations