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.
Citations
More filters
Posted Content•
TL;DR: In this article, it is shown that the negative effects of a monometapolym are worse than those of a simple monopoly and that the loss of welfare indirectly caused by IPRs is likely to be much higher than is usually expected.
Abstract: With four major companies sharing more than 85% of the market, the recording industry is one of the most concentrated industries. While this market concentration has been traditionally linked with high barriers to entry, recent technological changes have made these barriers almost disappear. Nonetheless, market concentration remains, mostly due to IPRs protecting major companies. This has traditionally been considered acceptable due to the high sunk costs of music recording that prevent an efficient outcome in a competitive environment. This article calls this traditional wisdom into question and demonstrates that the majors are not only monopolies but also monoposonies: they are monometapolies. It is shown that the negative effects of a monometapoly are worse than those of a simple monopoly and that the loss of welfare indirectly caused by IPRs is likely to be much higher than is usually expected. Finally, this articles challenges the widespread idea, among cultural economists, that artists are the only ones to be blamed for their poor living conditions. Indeed, it is demonstrated that oversupply on their part is a merely a sign of the monometapolistic structure of the industry and not the root of the problem, as it is usually thought.
1 citations
TL;DR: In this article , an integrated system dynamics model was developed for scenario analysis in sub-sectors of the Kheirabad River Basin in southwestern Iran where managing water resources is seriously challenging due to population growth and periodic drought.
Abstract: In this study, an integrated system dynamics model was developed for scenario analysis in sub-sectors of the Kheirabad River Basin in southwestern Iran where managing water resources is seriously challenging due to population growth and periodic drought. Afterward, the variability of water demand and supply under baseline scenario and different water demand management policies, including water conservation and water pricing, was evaluated. Findings illustrated that with increasing population and cropland area if no further demand management policies were implemented, the total water demand and withdrawal of water resources increase by more than 0.75% annually. The annual surface water availability during 2018-2030 is expected to decrease by around -1.23%. Under these circumstances, the sustainability index of the water resources system is equal to 0.703, indicating that the water system would not be able to meet the total water demand in the near future. However, the water resource sustainability index increases significantly by improving irrigation efficiency and changing crop patterns at the basin. Also, the reduction in per capita water demand and domestic water pricing under the competition structure would help to improve the sustainability index to 0.963 and 0.749, respectively.
1 citations
TL;DR: In this article, the authors demonstrate that border carbon adjustments (BCAs) that do not exceed the burdens imposed by carbon taxation on domestic like products could be consistent with World Trade Organization (WTO) rules.
Abstract: Because carbon taxes can lead to loss of competitiveness, applying tariffs on imports from non-carbon-restricting countries helps address the cost disadvantage faced by producers in carbon-restricting countries. Such tariffs, known as border carbon adjustments (BCAs), can also help reduce possible carbon “leakage,” or the growth in foreign emissions due to increased production of carbon-intensive goods in non-carbon-restricting countries. We demonstrate that BCAs that do not exceed the burdens imposed by carbon taxation on domestic like products could be consistent with World Trade Organization (WTO) rules. However, “neutral” (i.e., nondiscriminatory) BCAs might still be inefficiently high from a global welfare perspective. This stems from the misaligned focus of BCAs on imports rather than production—the real cause of emissions. The discrepancy between neutrality and efficiency enables carbon-restricted industries to seek inefficiently high BCAs. Recognition of this discrepancy strengthens the case for multilateral alternatives that curb global carbon emissions.
1 citations
Posted Content•
TL;DR: In this paper, the authors conducted a choice-based conjoint experiment and included the new pricing signal of additional contributions, and found that price is not the dominating criterion on the current market, but equally important to voluntary coverage options.
Abstract: Germany’s statutory health insurance (SHI) system has been radically changed in the year 2009 by the introduction of premium equality across all SHI funds. As of today, all funds charge the same price, which is 15.5% of each insurant’s gross income. The option to charge additional contributions as a flat, monthly per head amount in case funds cannot cover their costs has only scarcely been used so far. However, research predicts that this current state of premium equality is soon to be changed (PFISTER, 2009, EIBICH et al., 2011). Based on KICK and LITTICH (2011), I conduct a choice-based conjoint experiment and include the new pricing signal of additional contributions. I find that price is not the dominating criterion on the current market, but equally important to voluntary coverage options. Corporate reputation and a provider’s brand name lose importance, but are still a major quality signal within consumers’ choice decisions. The brand name TK (Technical Health Insurance Fund), as reputational leader, provides additional value for insurants. TK is able to charge up to €1.46 additional contributions from each insurant per month without falling behind their competitors. Compared to the general contribution rate of 15.5% of each insurant’s gross income, of course, €1.46 seems rather low. However, the statutory health insurance funds that already charged additional contributions from their members collected between €5 and €16 per month and head. Using this rational reveals that TK is able to charge close to 10% of the additional contribution range simply due to their reputational advantage. Thus, corporate reputation proves to enhance a fund’s bargaining position towards its potential insurants, as it allows charging and justifying price premiums. A second empirical study reveals that people lack knowledge about funds’ benefit and coverage portfolios and the SHI system in general. Insurants consistently overestimate funds with comparably higher corporate reputation regarding their benefit and coverage details of selected performance categories. Implications for practitioners and policy makers are discussed.
1 citations
Cites background from "Intermediate microeconomics : A mod..."
...“Homo Oeconomicus” “[…] choose[s] the best things [he] can afford” (VARIAN, 2006, p. 33)....
[...]
...An additional 4 Detailed deliberations regarding the dominating role of price can be found in the subsequent paragraph. assumption is the unrestricted and immediate access to information on the product/ service market without transaction costs (VARIAN, 2006)....
[...]
...assumption is the unrestricted and immediate access to information on the product/ service market without transaction costs (VARIAN, 2006)....
[...]