Book•
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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27 Aug 2019
TL;DR: This paper incorporates audience diversity and seed diversity into the IM task and proposes a solution-dependent approximation algorithm to circumvent the hardness results in audience diversification and seed diversification.
Abstract: Influence maximization (IM) has been extensively studied for better viral marketing. However, previous works put less emphasis on how balancedly the audience are affected across different communities and how diversely the seed nodes are selected. In this paper, we incorporate audience diversity and seed diversity into the IM task. From the model perspective, in order to characterize both influence spread and diversity in our objective function, we adopt three commonly used utilities in economics (i.e., Perfect Substitutes, Perfect Complements and Cobb-Douglas). We validate our choices of these three functions by showing their nice properties. From the algorithmic perspective, we present various approximation strategies to maximize the utilities. In audience diversification, we propose a solution-dependent approximation algorithm to circumvent the hardness results. In seed diversification, we prove a (1/e --- ϵ) approximation ratio based on non-monotonic submodular maximization. Experimental results show that our framework outperforms other natural heuristics both in utility maximization and result diversification.
2 citations
Cites background or methods or result from "Intermediate microeconomics : A mod..."
...Inspired by economics practice [39], we propose to use three kinds of utility functions, Perfect Substitutes, Perfect Complements and Cobb-Douglas to composite multiple factors into the final objective....
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...In economics, this is named as the law of diminishing marginal rates of substitution [39]....
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...In contrast, our framework systematically studies a family of utility functions from the perspective of economics [39]....
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...In this paper, inspired by the utility functions in economics, we focus on three cases which are commonly adopted to characterize users’ preference when there are multiple factors [39]....
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...of Substitution (CES) [39]....
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Posted Content•
TL;DR: In this article, the Giffen Paradox is considered in textbook presentations of the Slutsky Equation under a discrete price change. But, the compensation scheme is based on the compensating variation, not the equivalent variation.
Abstract: In our experience, all textbook presentations of the Slutsky Equation under a discrete price change use a compensation scheme based on the compensating variation. Our students have sensed this convention is arbitrary in that they have asked, why consider this compensation scheme, and not one based on the equivalent variation? The present paper outlines how one might address this matter analytically, and then discusses how our findings provide a new insight into the Giffen Paradox.
2 citations
Cites background or methods from "Intermediate microeconomics : A mod..."
...2 Because the CV and EV are identical under a quasi-linear utility function [ Varian (2003, Chapter 14) ], the...
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...is a staple of most modern microeconomics textbooks [e.g., Luenberger (1995), Roberts and Schulze (1976), Takayama (1993), and Varian (1992 and 2003) ], and remains a topic of ongoing research [e.g., Raiklin (1990), Panik (2002), and Weber (2002a and 2002b)]....
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01 Dec 2005
TL;DR: In this article, the rationality principle can only be regarded as a hypothetical law, and it follows a discussion of experiments and empirical studies which falsify this principle as a real law.
Abstract: The aim of this paper is to discuss the possibility to formulate the rationality principle as a law of human behavior. In the first step I will show that from a methodological point of view the rationality principle can only be regarded as a hypothetical law. The second step identifies the rationality principle as a simultaneous maximization procedure. It follows a discussion of experiments and empirical studies which falsify the rationality principle as a hypothetical law. The rationality principle will be rejected as a general theory of human behavior, although no alternative principle provides better results. Finally, three solutions are discussed: an action theory as a heuristic tool (in the sense of Max Weber's ideal-types), probabilistic theory, or meta-theory (in the sense of Gary Becker's human capital theory).
2 citations
16 Oct 2014
TL;DR: By the application of the game theory, an answer is looked for the question why the people do not pay tax voluntarily and the duopolist's dilemma on decision-making about to give up cartels is considered.
Abstract: In this work the authors present and analyze some possibilities of applying the game theory to solve economic problems, primarily microeconomic ones. The first example to illustrate the applications of the game theory gives the solution of alternatives of two companies for computer production in strategic decision-making for using the joint operative system. Alternative possibilities of companies' decision-making and repercussions of their decisions on companies' profit have been considered in the variant both of imperfect and perfect information of companies (players). In the second part of the work, authors analyze possibilities to attain the Nash equilibrium, according to the minimax criterion on the well-known example of the so-called prisoner's dilemma. At the end, by the application of the game theory, an answer is looked for the question why the people do not pay tax voluntarily; the authors also consider the duopolist's dilemma on decision-making about to give up cartels.
2 citations
TL;DR: Fertiliser use in chickpea (Cicer arietinum) grown under dry conditions was analysed from an economic point of view and it was found that farmers should increase average chick pea production area to use resources efficiently.
Abstract: Fertiliser use in chickpea (Cicer arietinum) grown under dry conditions was analysed from an economic point of view. In addition, a simple relationship between output (amount of chickpea) and inputs (fertiliser cost, pesticides cost, chickpea production area, labour, and amount of seed) was determined. The Tokat province of Turkey was chosen as the research area because it was the main chickpea production area. To study the effects of fertiliser use on chickpea production, 74 farmers were randomly selected and surveyed. Research findings were as follows: (1) gross and net profit was negative for the fertiliser user group and non‐fertiliser user group; (2) lack of technical knowledge and high input prices were the main reasons for unbalanced fertiliser use by farmers; (3) chickpea production area and fertiliser cost were the most important factors affecting chickpea production; (4) chickpea production was little effected by labour; (5) amount of seed and total pesticide cost were not significant i...
2 citations