736 • INDEX Extent of market, 9–12 External costs, negative, 662–664 Externalities, 661–666 common property resources, 687–690 crawfish fishing in Louisiana, 689–690 emissions example, 667–678 marginal external benefit, 664 marginal external costs, 663 marginal social benefit, 664 marginal social costs, 663 market failure, 323–325, 667–678 municipal solid waste example, 678 negative externalities and inefficiency, 662–664 positive externalities and inefficiency, 664–665 property rights, 684–687 public goods, 690–694 recycling example, 675–677 stock, 678–684 F Facebook, 138–139 Factor inputs demand when one input is variable, 530–533 demand when several inputs are variable, 533–534 marginal revenue product, 531 market supply of, 539–541 supply to a firm, 537–539 Factor markets competitive, 529–542 economic rent and, 542–544 equilibrium in, 542–545 market demand curve and, 534–535 with monopoly power, 550–555 with monopsony power, 546–550 Factors of production, 204 Factory, net present value of, 570–571 Fair, Ray C., 541n3 Fairness, 192–194 Farber, Henry S., 196n34 Federal funds rate, 590 Federal Trade Commission Act (1914, amended 1938, 1973, 1975), 391 Financial losses, competitive firm incurring, 289–290 Firm interactions, monopoly power and, 377 First-degree price discrimination, 401–404 First mover advantage, 463–464 Fisher, Franklin M., 46n12 Fishing industry common property resources and, 687–690 property rights and, 685 Fishman, Alan, 647 Fixed costs, 233–234 Fixed input, 205 Fixed-proportions production function, 219–220 Fixed-weight indexes, 103 Flows vs stocks, 560–561 Foley, Patricia, 53n16 Food, Conservation, and Energy Act of 2008, 39 Food cooperatives, 283 Food crisis, 212–214 cereal yields and world price of food, 213 index of world food production per capita, 213 Ford, Henry, 656 Ford Motor Company, 17, 77–78, 88, 310, 389, 457, 656 Formby, John P., 130n5 Fox, Merritt B., 646n9 Framing, 191 Frech, H E., III, 98n12 Free entry and exit, perfect competition and, 280–281 Free riders, 693 Free trade, 618–623 comparative advantage and, 618–619 expanded possibilities frontier and, 619–620 gains from, 618–623 protectionism and, 622–623 Friedlaender, Ann F., 260n11 Friedman, James W., 492n5 Frijters, Paul, 81n5 Fudenberg, Drew, 492n5 Fullerton, Don, 673n7 Future cash flows, negative, 572 G Games, defined, 487 Game theory See also Prisoners’ dilemma acquiring a company and, 490 auctions and, 516–524 bargaining strategy and, 508–509 battle of the sexes game, 497–498 beach location game, 493–494 commitment and credibility and, 506–508 dominant strategy and, 490–491 empty threats and, 506 entry deterrence and, 510–516 extensive form of a game and, 503–504 finite number of repetitions and, 499 infinitely repeated game, 499 matching pennies game, 496–497 maximin strategies and, 494–496 mixed strategies and, 496–498 moving first advantage and, 504–505 Nash equilibrium and, 492–498 noncooperative vs cooperative games, 488–489 product choice problem, 492–493 repeated games, 498–502 reputation and, 507–508 sequential games, 502–505 strategic decisions and, 487–490 tit-for-tat strategy, 498–499 winner’s curse and, 519–520 Gasoline demand for, 40–41, 43–45 long-run demand for, 131–132 prices and per capita consumption, 131 rationing of, 98–100 taxes on, 122–124, 349–351 Gates, Bill, 394 Gateway, 234 General Electric, 43 General equilibrium analysis, 595–602 “contagion” across world stock markets, 600–601 economic efficiency, 601–602 General Foods, 456 General Mills, 67 General Motors, 5, 43, 89, 177, 178, 201, 267, 310, 358, 389 Ghemawat, Pankaj, 509n12, 514n16 Ghosh, Soumendra N., 374n9 Gibson, Robert C., 44n11 Giffen good, 122 Gillette, 417 Gillingham, Kenneth, 251n8 Glaister, Stephen, 44n11 Global warming, 679–684 reducing GHG emissions, 683 Gokhale, Jagadeesh, 105n17 Golden parachutes, 648 Gonik, Jacob, 654n19 Gordon, Robert J., 105n15 Government bailouts, 185 Government intervention competitive markets and, 317–323 price controls, 58–60 price supports and, 332–333 Graham, Daniel, 44n11 Graham, David, 331n7 Greene, David, 44n11 Greene, William H., 269n19 Greenhouse gases See Global warming Greenstone, Michael, 135n9 Griffin, James M., 55n18, 294n4 Griliches, Zvi, 105n15 Gross domestic product (GDP), 42–43 Grossman, Gene M., 621n7 Guarantees, product, 642 H Hahn, Robert W., 673n8 Haisken-Denew, John P., 81n5 Hall, Robert E., 91n10 Halvorsen, Robert, 587n21 Hamermesh, Daniel, 643n7 Hamilton, James D., 54n19 Hansen, Julia, 130n5 Happiness marginal utility and, 97–98 ordinal scale for, 81–82 Harrison, David, Jr., 693n25 Hauser, John, 467n5 Health care consumer choice of, 90–91 inefficiency in health care system, 626–627 production function for, 211–212