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Daniel l. Rubinfeld

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Markets for Prescription Drugs 10 10 10.1 Astra-Merck Prices Prilosec<br />

The Price of Eggs and the Price of a College Education 12 10 .. 2 Markup Pricing: Supermarkets to Designer Jeans<br />

1 .. 3 The Minimum Wage 13 10,3 The Pricing of Prerecorded Videocassettes 343<br />

2 2,1 The Price of Eggs and Price of a College Education Revisited 26 10.4 Monopsony Power in U.S. Manufacturing 358<br />

2.2 Wage Inequality in the United States 27 10,5 A Phone Call About Prices 362<br />

2,3 The Long-Run Behavior of Natural Resource Prices 28 10 .. 6 The United States versus Microsoft 363<br />

2.4 The Market for Wheat 33 11 lU The Economics of Coupons and Rebates 379<br />

2.5 The Demand for Gasoline and Automobiles 39 11,2 Airline Fares 380<br />

2.6 The Weather in Brazil and the Price of Coffee in New York 41 11.3 How to Price a Best-Selling Novel 384<br />

2,7 Declining Demand and the Behavior of Copper Prices 47 11.4 Polaroid Cameras 389<br />

2.8 Upheaval in the World Oil Market 49 11.5 Pricing Cellular Phone Service 390<br />

2,9 Price Controls and Natural Gas Shortages 54 11,6 The Complete Dinner versus a la Carte: A Restaurant's Pricing Problem 401<br />

3 3.1 Designing New Automobiles (I) 71 11,7 Advertising in Practice 406<br />

3.2 Designing New Automobiles (II) 81 12 12,1 Monopolistic Competition in the Markets for Colas and Coffee 428<br />

3.3 Decision Making and Public Policy 82 12.2 A Pricing Problem for Procter & Gamble 440<br />

3.4 A College Trust Fund 85 12 .. 3 Procter & Gamble in a Prisoners' Dilemma 444<br />

3.5 Revealed Preference for Recreation 88 12.4 Price Leadership and Price Rigidity in Commercial Banking 448<br />

3,6 Gasoline Rationing 91 12.5 The Cartelization of Intercollegiate Athletics 455<br />

3.7 The Bias in the CPI 97 12 .. 6 The Milk Cartel 456<br />

4 4.1 Consumer Expenditures in the United States 108 13 13.1 Acquiring a Company 463<br />

4.2 The Effects of a Gasoline Tax 114 13.2 Oligopolistic Cooperation in the Water Meter Industry 474<br />

4.3 The Aggregate Demand for Wheat 120 13.3 Competition and Collusion in the Airline Industry 475<br />

4.4 The Demand for Housing 122 13.4 Wal-Mart Stores' Preemptive Investment Strategy 482<br />

4,5 The Value of Clean Air 125 13,5 DuPont Deters Entry in the Titanium Dioxide Industry 487<br />

4.6 Network Externalities and Demands for Computers and E-Mail 130 13.6 Diaper Wars 488<br />

4,7 The Demand for Ready-to-Eat Cereal 134 13.7 Internet Auctions 495<br />

5 5.1 Deterring Crime 154 14 14.1 The Demand for Jet Fuel 508<br />

5 .. 2 Business Executives and the Choice of Risk 160 14.2 Labor Supply for One- and Two-Earner Households 513<br />

5.3 The Value of Title Insurance When Buying a House 163 14.3 Pay in the Military 517<br />

5.4 The Value cif Information in the Dairy Industry 165 14.4 Monopsony Power in the Market for Baseball Players 520<br />

5 .. 5 Investing in the Stock Market 173 14.5 Teenage Labor Markets and the Minimum Wage 521<br />

6 6.1 Malthus and the Food Crisis 187 14.6 The Decline of Private-Sector Unionism 527<br />

6,2 Labor Productivity and the Standard of Living 189 14.7 Wage Inequality-Have Computers Changed the Labor Market 528<br />

6 .. 3 A Production Function for Wheat 196 15 15,1 The Value of Lost Earnings 537<br />

6.4 Returns to Scale in the Carpet Industry 199 15,2 The Yields on Corporate Bonds 541<br />

7 7.1 Choosing the Location for a New Law School Building 205 15,3 Capital Investment in the Disposable Diaper Industry 548<br />

7.2 Sunk, Fixed, and Variable Costs: Computers, Software, and Pizzas 207 15.4 Choosing an Air Conditioner and a New Car 550<br />

7.3 The Short-Run Cost of Aluminum Smelting 213 15,5 How Depletable Are Depletable Resources 554<br />

7.4 The Effect of Effluent Fees on Input Choices 220 16 16.1 The Interdependence of International Markets 566<br />

7.5 Economies of Scope in the Trucking Industry 232 16 .. 2 The Effects of Automobile Import Quotas 588<br />

7.6 The Learning Curve in Practice 236 16.3 The Costs and Benefits of Special Protection 589<br />

7.7 Cost Functions for Electric Power 240 17 17.1 Lemons in Major League Baseball 600<br />

7.8 A Cost Function for the Savings and Loan Industry 241 17.2 Working into the Night 605<br />

8 8.1 The Short-Run Output Decision of an Aluminum Smelting Plant 260 17,3 Reducing Moral Hazard-Warranties of Animal Health 608<br />

8.2 Some Cost Considerations for Managers 261 17.4 Crisis in the Savings and Loan Industry 608<br />

8.3 The Short-Run Production of Petroleum Products 265 17,5 Managers of Nonprofit Hospitals as Agents 611<br />

8.4 The Short-Run World Supply of Copper 268 17.6 Efficiency Wages at Ford Motor Company 618<br />

8,5 The Long-Run Supply of Housing 282 18 18.1 The Costs and Benefits of Reduced Sulfur Dioxide Emissions 631<br />

9 9.1 Price Controls and Natural Gas Shortages 292 lR2 Emissions Trading and Clean Air 632<br />

9.2 The Market for Human Kidneys 295 18.3 Regulating Municipal Solid Wastes 637<br />

9.3 Airline Regulation 300 18.4 The Coase Theorem at Work 641<br />

9.4 Supporting the Price of Wheat 306 18.5 Crawfish Fishing in Louisiana 643<br />

The Sugar Quota 312 18.6 The Demand for Clean Air 647

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