Intermediate microeconomics : A modern approach
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38 citations
Cites result from "Intermediate microeconomics : A mod..."
...nd social optimum frameworks. It is numerically shown that the social optimum has a lower average output level than that in the noncooperative case. This is similar to the behavior in a duopoly model [48] where cooperation of the two players results in a lower total output than in the Cournot equilibrium. The paper is organized as follows. Section II introduces the game and social optimum problems wit...
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38 citations
Cites background from "Intermediate microeconomics : A mod..."
...Incentive compatibility in economics and game theory states that the incentives should motivate the actions of individual participants (consumers) such that they behave in a manner consistent with the rules established by the agent (retailer) [19]....
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...The consumer behaviour is formulated mainly in terms of consumer preferences, and a utility function is a way to describe preferences [19]....
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...form of a convex function to simulate the diminishing marginal utility [19], [21]....
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...The second column is the total consumer welfare calculated by the sum of the individual utility functions, which is referred to as a classical utilitarian [19]....
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...Because what matters is the relative values of F(p, q) instead of the absolute values [19], F(p(0), q(0)) is set to 0 without loss of generality....
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38 citations
38 citations
Cites background from "Intermediate microeconomics : A mod..."
...As Varian (2010, 55) states: “Originally, preferences were defined in terms of utility: to T. Kwarciński and W. Załuski 183 say a bundle (x1,x2) was preferred to a bundle (y1,y2) meant that the x-bundle had a higher utility than the y-bundle....
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...In his popular textbook “Intermediate Microeconomics”, Hal Varian asserts that back in the Victorian days classical utilitarians and economists understood ‘utility’ as an equivalent of a person’s overall well-being identified with happiness (Varian 2010)....
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38 citations
Cites background from "Intermediate microeconomics : A mod..."
...3 See Markusen et al. (1995) and Varian (2006) for the related discussions of homothetic preferences and community indifference curves....
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...Let P1 and P2 denote the prices of x1 and x2, respectively; it is fortunate in this framework that either of the two prices, by itself, is not important since only the relative 4 See Markusen et al. (1995) and Varian (2006) for the properties of the production possibilities frontier....
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