INDEX • 739 Matching pennies game, 496–497 Maximin strategies, game theory and, 494–496 Mayer, Christopher, 195n33 McAfee, Preston, 516n19 McClennan, Mark, 176n9 McDermott, Shaun P., 673n7 McDonald’s, 428, 636 McKean, Brian J., 673n8 Medical care, value of information and, 175–176 Medicare, 635n2, 636–637 Menell, Peter S., 678n13 Merck, 281 Mercurio Europeo, 478 Metals, supply of, 45–46 Metering demand, 428–429 Method of Lagrange multipliers, 150–151 Microeconomics definition of, reasons to study, 16–18 themes of, 4–7 Microsoft, 390, 567–569 Microsoft Corporation, 235, 394–395, 429, 530 Milgrom, Paul, 516n19 Military pay, 545 Milk cartel, 481–482 Miller, Jonathan, 284n2 Mineral resources, 29–31 Minimum cost, producing an output and, 246 Minimum prices, 328–331 Minimum wage history of, 15–16 teenage labor markets and, 549–550 unemployment and, 329 Miranda, Marie Lynn, 678n13 Mixed bundling, 423–426 Mixed strategies, game theory and, 496–498 Mobil Oil, 429 Models, 5–6 Monopoly, 358–368, 452–456 See also Antitrust laws; Monopsony average and marginal revenue and, 358–359 bilateral monopoly, 388 cartels and, 478 deadweight loss and, 378 definition of, 357, 358, 452 demand shifts and, 365–366 economic efficiency and, 454–455 elasticity of market demand and, 376 factor markets and, 550–555 firm interactions and, 377 Lerner Index and, 371–372 makings of, 452–453 measuring power of, 371–372 monopsony compared, 385 multiplant firms and, 367–368 natural monopoly, 380–381 number of firms and, 376–377 output decisions and, 359–361 perfect competition versus, 454 power of, 368–375 price regulation and, 379–380 pricing rule of thumb and, 363–364, 372 production with two plants, 369 regulation in practice and, 381–382 rent seeking and, 378–379 resource production by monopolist, 586–587 short and long run equilibrium and, 453–454 social costs of, 377–382 sources of power, 375–377 tax effects and, 366–367 unionized and nonunionized workers and, 552 wage rates and, 551–552 Monopsony, 382–385 bargaining power and, 548 buyer interaction and, 387 deadweight loss from, 387 definition of, 357, 358 elasticity of market supply and, 386–387 factor markets and, 546–550 marginal and averaged expenditure and, 546–547 monopoly compared, 385 monopsonist buyer, 384 number of buyers and, 387 power and, 382–385 purchasing decisions and, 547–548 social costs of, 387–388 sources of power, 386–387 U.S manufacturing and, 388–389 Montero, J P., 675n10 Moral hazard, 643–645 Morgan, John, 175n8, 195n32 Morkre, Morris E., 343n13 Morrison, S., 331n7 Movies bundling of, 419–420 DVD rental effect on, 596–597 Mueller, Michael J., 587n21 Multiplant firms, monopolies and, 367–368 Multiple regression analysis, 700–707 demand for coal (example), 706–707 economic forecasting, 704–705 estimation, 701–702 goodness of fit, 704 statistical tests, 702–704 Municipal solid waste regulation, 678 Murphy, Kevin M., 550n8 Mutual funds, diversification and, 171 Myers, Stewart, 574n12 N Nagle, Thomas, 291n3 Narasimhan, Chakravarthi, 408n5 Nash, John, 458 Nash equilibrium, 458, 466, 467, 469, 492–498 National Collegiate Athletic Association (NCAA), 481 National defense, 691 National Organ Transplantation Act, 325, 326 Natural Gas Policy Act of 1978, 59n22 Natural gas shortages, price controls and, 59–60, 322–323 Natural monopoly, 377 Natural resource prices, 29–31 Negative externalities, 662–664 Negatively correlated variables, 171 Negative network externalities, 137–138 Neptune Water Meter Company, 501 Net present value capital investment decisions and, 569–573 of college education, 581 discount rates and, 575–576 interest rates and, 589–590 Network externalities, 135–139 bandwagon effect and, 136 Internet auctions and, 523 negative, 137–138 positive, 135–137 snob effect and, 137 Neumark, David, 16n8, 550n8 Nevin, John R., 456n1 Nevo, Aviv, 408n5 Newell, Richard G., 251n8 New York taxicab supply, 312–313, 338–339, 573 Noll, Roger, 548n5 Nominal discount rate, 571–572 Nominal prices, 12–16 Noncompetitive markets, Nonconstant sum game, 488n2 Noncooperative games, 470, 488–489 Nondiversifiable risk, 179, 574–575 Nonexclusive goods, 690–691 Nonprice rationing, 98–100 Nonprofit hospitals, 649 Nonprofit organizations, 649 Nonrival goods, 690 Nonsystematic risk, 574n12 Nonunionized workers, monopoly power and, 552 Normal vs inferior goods, 115–116 Normative analysis, 6–7 North American Free Trade Agreement (NAFTA), 622–623 Northeast Interstate Dairy Compact, 481 Northwestern University Law School, 232–233 No-shirking constraint curve, 655 O Office space, September 11 effects on, 31–32 Oi, Walter Y., 414n12 Oil market, upheaval in, 54–58 price elasticity estimates, 55 price of crude oil, 55 Saudi production cut, impact of, 57