Preface
1 Introduction
Part Ⅰ Theory of the Consumer
2 Preferences and Utility
　2.1 Introduction
　2.2 The Consumer's Preference Relation
　2.3 The Marginal Rate of Substitution
　2.4 The Consumer's Utility Function
　2.5 Utility Functions and the Marginal Rate of Substitution
　2.6 A Solved Problem
　Exercises
 Appendix. Differentiation of Functions
3 The Budget Constraint and the Consumer's Optimal Choice
　3.1 Introduction
　3.2 The Standard Budget Constraint, the Budget Set, and the Budget Line
　3.3 Shifts of the Budget Line
　3.4 Odd Budget Constraints
　3.5 Income and Consumption over Time
　3.6 The Consumer's Optimal Choice: Graphical Analysis
　3.7 The Consumer's Optimal Choice: Utility Maximization Subject to the Budget Constraint
　3.8 Two Solved Problems
　Exercises
　Appendix. Maximization Subject to a Constraint:
 The Lagrange Function Method
4 Demand Functions
　4.1 Introduction
　4.2 Demand as a Function of Income
　4.3 Demand as a Function of Price
　4.4 Demand as a Function of Price of the Other Good
　4.5 Substitution and Income Effects
　4.6 The Compensated Demand Curve
　4.7 Elasticity
　4.8 The Market Demand Curve
　4.9 A Solved Problem
　Exercises
5 Supply Functions for Labor and Savings
　5.1 Introduction to the Supply of Labor
　5.2 Choice between Consumption and Leisure
　5.3 Substitution and Income Effects in Labor Supply
　5.4 Other Types of Budget Constraints
　5.5 Taxing the Consumer's Wages
　5.6 Saving and Borrowing: The Intertemporal Choice of Consumption
　5.7 The Supply of Savings
　5.8 A Solved Problem
　Exercises
6 Welfare Economics 1: The One-Person Case
　6.1 Introduction
　6.2 Welfare Comparison of a Per-Unit Tax and an Equivalent Lump-Sum Tax
　6.3 Rebating a Per-Unit Tax
　6.4 Measuring a Change in Welfare for One Person
　6.5 Measuring Welfare for Many People; A Preliminary Example
　6.6 A Solved Problem
　Exercises
 Appendix. Revealed Preference
7 Welfare Economics 2: The Many-Person Case
　7.1 Introduction
　7.2 Quasilinear Preferences
　7.3 Consumer's Surplus
　7.4 A Consumer's Surplus Example with Quasilinear Preferences
　7.5 Consumers' Surplus
　7.6 A Last Word on the Quasilinearity Assumption
　7.7 A Solved Problem
　Exercises
Part Ⅱ Theory of the Producer
8 Theory of the Firm 1: The Single-Input Model
　8.1 Introduction
　8.2 The Competitive Firm's Problem, Focusing on Its Output
　8.3 The Competitive Firm's Problem, Focusing on Its Input
　8.4 Multiple Outputs
　8.5 A Solved Problem
　Exercises
9 Theory of the Firm 2: The Long-Run, Multiple-Input Model
　9.1 Introduction
　9.2 The Production Function in the Long Run
　9.3 Cost Minimization in the Long Run
　9.4 Profit Maximization in the Long Run
　9.5 A Solved Problem
　Exercises
10 Theory of the Firm 3: The Short-Run, Multiple-Input Model
　10.1 Introduction
　10.2 The Production Function in the Short Run
　10.3 Cost Minimization in the Short Run
　10.4 Profit Maximization in the Short Run
　10.5 A Solved Problem
　Exercises
Part Ⅲ Partial Equilibrium Analysis: Market Structure
11 Perfectly Competitive Markets
　11.1 Introduction
　11.2 Perfect Competition
　11.3 Market/Industry Supply
　11.4 Equilibrium in a Competitive Market
　11.5 Competitive Equilibrium and Social Surplus Maximization
　11.6 The Deadweight Loss of a Per-Unit Tax
　11.7 A Solved Problem
　Exercises
12 Monopoly and Monopolistic Competition
　12.1 Introduction
　12.2 The Classical Solution to Monopoly
　12.3 Deadweight Loss from Monopoly: Comparing Monopoly and Competition
　12.4 Price Discrimination
　12.5 Monopolistic Competition
　12.6 A Solved Problem
　Exercises
13 Duopoly
　13.1 Introduction
　13.2 Cournot Competition
　13.3 More on Dynamics
　13.4 Collusion
　13.5 Stackelberg Competition
　13.6 Bertrand Competition
　13.7 A Solved Problem
　Exercises
14 Game Theory
　14.1 Introduction
　14.2 The Prisoners' Dilemma, and the Idea of Dominant Strategy Equilibrium
　14.3 Prisoners' Dilemma Complications: Experimental Evidence and Repeated Games
　14.4 The Battle of the Sexes, and the Idea of Nash Equilibrium
　14.5 Battle of the Sexes Complications: Multiple or No Nash Equilibria, and Mixed Strategies
　14.6 The Expanded Battle of the Sexes, When More Choices Make Players Worse Off
　14.7 Sequential Move Games
　14.8 Threats
　14.9 A Solved Problem
　Exercises
Part IV General Equilibrium Analysis
15 An Exchange Economy
　15.1 Introduction
　15.2 An Economy with Two Consumers and Two Goods
　15.3 Pareto Efficiency
　15.4 Competitive or Walrasian Equilibrium
　15.5 The Two Fundamental Theorems of Welfare Economics
　15.6 A Solved Problem
　Exercises
16 A Production Economy
　16.1 Introduction
　16.2 A Robinson Crusoe Production Economy
　16.3 Pareto Efficiency
　16.4 Walrasian or Competitive Equilibrium
　16.5 When There Are Two Goods, Bread and Rum
　16.6 The Two Welfare Theorems Revisited
　16.7 A Solved Problem
　Exercises
Part V Market Failure
17 Externalities
　17.1 Introduction
　17.2 Examples of Externalities
　17.3 The Oil Refiner and the Fish Farm
　17.4 Classical Solutions to the Externality Problem: Pigou and Coase
　17.5 Modern Solutions for the Externality Problem: Markets
　for Pollution Rights
　17.6 Modern Solutions for the Externality Problem: Cap and Trade
　17.7 A Solved Problem
　Exercises
18 Public Goods
　18.1 Introduction
　18.2 Examples of Public Goods
　18.3 A Simple Model of an Economy with a Public Good
　18.4 The Samuelson Optimality Condition
　18.5 The Free Rider Problem and Voluntary Contribution
　Mechanisms
　18.6 How to Get Efficiency in Economies with Public Goods
　18.7 A Solved Problem
　Exercises
19 Uncertainty and Expected Utility
　19.1 Introduction and Examples
　19.2 Von Neumann-Morgenstern Expected Utility: Preliminaries
　19.3 Von Neumann-Morgenstern Expected Utility:
　Assumptions and Conclusion
　19.4 Von Neumann-Morgenstern Expected Utility: Examples
　19.5 A Solved Problem
　Exercises
20 Uncertainty and Asymmetric Information
　20.1 Introduction
　20.2 When Sellers Know More Than Buyers: The Market for "Lemons"
　20.3 When Buyers Know More Than Sellers: A Market for Health Insurance
　20.4 When Insurance Encourages Risk Taking: Moral Hazard
　20.5 The Principal-Agent Problem
　20.6 What Should Be Done about Market Failures Caused by Asymmetric Information
　20.7 A Solved Problem
　Exercises
Index