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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01 Jan 2005
TL;DR: In this paper, a recursive model of supply and price response was constructed to determine the factors that influence Tennessee hay acreage and yield, and to quantify hay price response to the quantity of hay and other factors.
Abstract: The hay industry in Tennessee closely resembles a perfectly competitive market. There are no substantial barriers to market entry and farmers can freely exit if they so choose. A large number of firms and consumers (livestock producers and equine operators) exist. Hay is a fairly homogeneous product; although hay varieties are not identical, in many livestock production situations they are close substitutes. Producers are price takers in the market. Currently, more information is needed regarding Tennessee hay supply and price response. The objectives of this study were: 1) to determine the factors that influence Tennessee hay acreage and yield, 2) to quantify acreage and yield response to prices and other factors, 3) to determine the factors that influence Tennessee hay prices, and 4) to quantify hay price response to the quantity of hay and other factors. To accomplish these objectives, a recursive model of supply and price response was constructed. Acreage and yield elasticities and price flexibilities were estimated from the model's coefficients. A ratio of lagged hay price to lagged wheat price, lagged hay acreage, and a time trend significantly impacted hay acreage. Hay yield responded to growing season rainfall, harvest season rainfall, lagged hay yield, and a time trend. Predetermined hay production, soybean meal price, per capita income, and a time trend significantly impacted Tennessee hay price. Elasticities calculated from these results indicated that Tennessee hay producers respond weakly to own and substitute crop prices. This weak response may occur because many hay producers are also cattle producers that harvest their own hay in an effort to guarantee themselves a reliable supply of roughage to last their herds throughout the
1 citations
01 Jan 2014
TL;DR: In this article, a comparison between Islamic and conventional theories of information and advertisements through the "Constructionist" approach is made, which reveals that, Islamic theories are more effective than the conventional theories, because Islamic economics scrutinizes the market in terms of both positive and normative sight.
Abstract: Information has enormous influences to maximize the satisfaction of economic agents whereas advertising works as media to convey information to the market. Informative advertising makes consumers better off while persuasive or uninformative advertising worsens off them. This paper makes a comparison between Islamic and conventional theories of information and advertisements through the “Constructionist” approach. This paper reveals that, Islamic theories are more effective than the conventional theories, because Islamic economics scrutinizes the market in terms of both positive and normative sight. On the contrary, conventional theories evaluate the market in terms of positive view only and promote contemporary advertisement which uses some unfair means including women, nudity, sexual appeals, and misinformation which further creates serious social, cultural and ethical problems in market. This problem prolongs due to absent of ethics and Islamic principles in conventional business. This article illustrates that, since law is not worth enough to correct the market, so an integration of Islamic principles and ethics to conventional theories is needed to eliminate the information asymmetries in advertising. Furthermore, conventional theories have no cure to dishonesty like information manipulation whilst Islamic economics derived from the Quran and Hadith offers rewards and punishments for honesty and dishonesty in business transactions.
1 citations
TL;DR: In this article, the authors diskutiert Aspekte, wie in derartigen Situationen der Verkauf uber sog. Absatzgrenzen so gesteuert werden kann, dass der erwartete Erlos maximal ist.
Abstract: Beim Verkauf von Nutzungsrechten fur terminlich gebundene knappe Kapazitaten (z.B. beim Verkauf von Flugtickets (Transportkapazitaten) oder bei der Reservierung von Hotelzimmern (Lagerkapazitaten)) ist die zukunftige Nachfrage in aller Regel nicht mit Sicherheit bekannt. Unterscheiden sich Kunden bezuglich der Nachfragemengen oder Preisbereitschaften, dann ist die spontan zu treffende Entscheidung, ob eine Kundennachfrage erfullt oder ob sie in der Hoffnung auf hoherwertige Nachfrage abgelehnt werden soll, nicht trivial. Dieser Beitrag diskutiert Aspekte, wie in derartigen Situationen der Verkauf uber sog. Absatzgrenzen so gesteuert werden kann, dass der erwartete Erlos maximal ist.
1 citations
TL;DR: It was found that the majority of both smokers and non-smokers preferred Pictorial Health Warning (PHWs) signs which relates to the principle of loss aversion to other types of smoking warning sign.
Abstract: The standard no smoking sign or prohibition sign which has a red circle with a red diagonal line through a cigarette picture has been used in schools, universities, as well as public places as a smoking prevention tool in Thailand since 1992. Nevertheless, statistical data indicates that the number of new smokers since 2001 to 2014 has not significantly changed and most of the smokers start this habit between the ages of 15-19 years old. This paper thereby aims to test smoker and non-smoker preference in relation to the standard, current smoking signs as well as other types of signs associated with various behavioral economic principles and psychological ideas. The basic reveal preference approach (RP) and state preference approach (SP) were used in order to test their preference, and the economic binary choices model with the maximum likelihood (ML) estimation was used to measure factors affecting the prevalence of smoking. This paper found that the majority of both smokers and non-smokers preferred Pictorial Health Warning (PHWs) signs which relates to the principle of loss aversion to other types of smoking warning sign. Basically, PHWs is used on the cigarette package which is not often seen by the non-smokers, even the smokers can prevent these PHWs by replacing cigarette packs with cigarette holder cases after buying cigarette packs. However, applying PWHs as a sign posted on school, university, and public places can, to a certain extent, make individuals more concerned about their future losses from smoking. Additionally, this paper found that males, and having friends smoking were two significant factors affecting individual smoking behavior. Finally, we hope that an application of PHWs on the smoking signs grounded on the idea of loss aversion could be further developed as another strategy preventing smoking especially for youths in schools and universities.
1 citations
Cites methods from "Intermediate microeconomics : A mod..."
...To illustrate, the field of behavioral economics is being developed to study people’s choices by combining insights from psychology together with economic theory (Varian & Repcheck, 2010)....
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DOI•
01 Mar 2020TL;DR: In this article, the authors extended the Leibenstein approach to measure the market performance, which evaluates the social welfare costs of market power and environmental inefficiency in an imperfect competition.
Abstract: Monopoly and negative externalities are two aspects of market failure that affect the market performance. This study extends the Leibenstein approach, a framework to measure the market performance, which evaluates the social welfare costs of market power and environmental inefficiency. To assess the deadweight loss, we capture pollution impacts, on the market performance in an imperfect competition. In doing so, we assess marginal costs and price elasticity of demand by a Translog function, market power by Herfindahl-Hirschman and Lerner indices, and environmental inefficiency by directional distance functions, at a Cournot competition for Iran’s energy-intensive industries at the four-digit ISIC level. Our results demonstrate that the social welfare costs of welfare triangle and economic rent are negligible and include a small amount of welfare costs. Non-ferrous foundry imposes the lowest social cost (1.03% of its production value), and cement, lime and gypsum industries impose the highest social cost (50.7% of their production value). Those industries with more market power pay less attention to the environment. In polluting industries, welfare loss, due to market power, is relatively negligible. However, relatively high cost of social welfare, due to environmental inefficiency, indicates the necessity of levying a green tax to reduce the adverse effects.
1 citations
Cites background from "Intermediate microeconomics : A mod..."
...It is proved that the profit function of a Cournot model can be written as Equation (19) (Varian, 2006): (19) ( )i G i i i ip q Q Q TC Where, i is profit of firm i, GP is the price of firm i, i Q is the product quantity of all active firms in the market (except firm i), Q is the total…...
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