INDEX • 737 Herd behavior, 184, 195 Hersey Products, 501 Herzlinger, Regina E., 649n16 Hester, Gordon L., 673n8 Hewlett-Packard, 8, 235 Hicks, John, 156 Hicksian substitution effect, 156–157 Himmelberg, Charles, 195n33 Hochman, Eithan, 222n11 Holden, Reed, 291n3 Home Box Office, 426 Homogeneous products, price competition with, 465–467 Horizontal integration, 439, 651 Horizontal summation of demand, 124 Hortaỗsu, Ali, 522n22 Hossain, Tankim, 195n32 Hotelling, Harold, 585n20 Hotelling rule, 585n20 Housing cooperatives, 283–284 demand for, 129–130 long-run supply of, 313–314 selling a house, 192 Housing price bubble, 185–188 Hufbauer, Gary Clyde, 622n9 Human capital, 580–584 Human kidneys, market for, 325–328 Hybrid cars, 16 I IBM, 235, 429 Ideal cost-of-living indexes, 101–102 Import tariffs or quotas, 340–344 Incentive design, in integrated firms, 652–654 Incentive programs, 334–335 Income budget constraints and, 84 distribution of, 29 elasticities of demand, 34–36, 41 happiness and, 82 individual demand and, 113–114 risk aversion and, 166–167 from sales jobs, 161, 164 Income-consumption curve, 114–115 Income effects, 121–122, 155–157 Increasing-cost industries, 308–309 Increasing returns to scale, 223, 256 Incremental profit, 402n3 Indifference curves consumer preferences and, 71–72 convexity, 75 ordinal utility function and, 80 risk and, 180–183 risk aversion and, 169 shape of, 73–74 utility functions and, 79–80 Indifference maps, 72–73 Individual demand, 112–119 See also Market demand; Network externalities Engel curves and, 116–118 Giffen good and, 122 income and substitution effects and, 119–124 income changes and, 114–115 individual demand curve and, 112–114 normal vs inferior goods and, 115–116 price changes and, 112, 113 substitutes and complements and, 118–119 Individual resource producer, production decisions by, 584–585 Industries, definition of, Industry demand for labor, determining, 534–535 Inefficiency negative externalities and, 662–664 positive externalities and, 664–665 Inelastic demand, 126, 321 Inferior goods, 115–116, 121 Infinitely elastic demand, 34, 35 Infinitely repeated game, 499 Infiniti, 426 Inflation-adjusted returns, 178 Inflexibility, short-run production, 253–254 Information market failure and, 324 value of and risk, 174–176 Informational cascades, 187, 189 Inglehart, Ronald, 81n6 Input choices, production and, 202 Input efficiency, 613–614 Input flexibility, 217 Input price changes, 293–294 Input substitution, 218–219 Insurance, 171–173 actuarial fairness and, 172–173 adverse selection and, 634–635 law of large numbers and, 172 moral hazard and, 643–645 risk and, 172–173 title insurance, 173–174 Integrated firm, asymmetric information in, 652–654 Intercollegiate athletics, cartelization of, 480–481 Interest rates determination of, 588–590 present discounted value and, 561–564 variety of, 589–590 International Bauxite Association (IBA), 477 International Coffee Agreement (ICA), 47n13 International competition, strategic trade policy and, 512–514 International Competition Network, 392 International Council of Copper Exporting Countries (CIPEC), 479, 480 International trade comparative advantage and, 619 expanded possibilities frontier and, 619–620 gains from, 618–623 protectionism and, 622–623 Internet auctions, 522–524 Internet bubble, 185 Intertemporal price discrimination, 410–413 Intertemporal production decisions, 584–587 individual resource producers and, 584–585 market price behavior and, 584–585 resource production by monopolist, 586–587 user cost and, 585–586 Interviews, demand determination and, 143 Investment decisions, consumer, 578–580 Investment portfolio, risk and, 179–180 iPod production, 621–622 Irvin, Thomas R., 665n3 Irwin, D A., 265n26 Isocost line, 245 Isoelastic demand, 127–128 Isoquant maps, 217 Isoquants, 216–217 Isoutility curve, 79 J Jensen, Clarence W., 343n13 Jet fuel, demand for, 536–537 Job market signaling, 638–643 Johnson, D Gale, 343n13 Jones, Charles I., 91n10 Jorgenson, Dale W., 105n15 Joskow, Paul, 675n10 Just, Richard E., 222n11 K Kahn, James R., 44n11 Kahneman, Daniel, 98n11, 189n24, 191n27, 194n31 Kao Soap Ltd., 467–469, 471–472 Kaplan, Daniel P., 331n7 Kaplow, Louis, 671n5 Kaserman, David L., 327n4, 327n5 Katz, Lawrence, 554n10 Kessler, Daniel, 176n9 Killinger, Kerry, 647, 648n13–14 Kimberly-Clark, 515–516, 576–578 Kinked demand curve model, 473–474 Klein, Benjamin, 429n19 Klenow, P J., 265n15 Knetsch, Jack, 189n24, 191n27 Knight, Frank, 160n1 Knittel, Chris, 131n6 Kohlhase, Janet E., 541n3 Kraemer, Kenneth L., 621n8 Kraft General Foods, 142 Krasker, William S., 649n16 Kreps, David, 465n2, 497n7 Krueger, Alan, 16n8, 549n7, 554n10 Krugman, Paul R., 513n14 L Labor curve average product of, 209 marginal product of, 209