Thus, Becker (1996) incorporated social norms of fairness into
microeconomic theory by generalizing the human capital construct to form a new variable called "social capital," while Akerlof (1990) pursued the same end but by importing into economic analysis Adams's (1963) social psychological "equity theory" of motivation.
He argues that "profit maximization" in the world economy is "the total return over the lifetime of the investment," which is "not what
microeconomic theory means by the term."(100) He applies this difference to American and Japanese exporting in the early 1980s, when the dollar increased in value.
This study provides an empirically tenable estimate of an average cost function using financial accounting ratios and bridges the gap between the
microeconomic theory of production and finance--both important contributions to the existing literature.
Ferguson,
Microeconomic Theory, 5th ed., Irwin, 1980.
Applying
microeconomic theory to tying, a practice previously thought to be without merit, has almost certainly improved public policy.
These chapters vary widely in general interest, as well as in their authors' familiarity with
microeconomic theory. Also, during an overly long period in which the present volume was in limbo or in press, several or the most valuable chapters appeared elsewhere in English and in more extended form.(4)
In this paper, we propose a simple geometric device that has the potential of becoming an important teaching aid in analyzing various problems in
microeconomic theory dealing with either many firms or many time periods.
Unlike other texts on
microeconomic theory, this text introduces the student to the general equilibrium approach to microeconomics by covering the two-sector model right from the start, rather than concentrating on partial equilibrium analysis.
29] "suspicious conduct is analyzed under the antitrust laws to determine whether it will produce injury to competition." The topic headings consist of "The Product Market," "The Geographic Market," "The Competitors," and "Market Power." These materials could easily be required reading in a college industrial organization or
microeconomic theory course.
Farmer starts the book with the premise that since macroeconomics deals with the behavior of the economy as a whole, hence the natural foundation for macroeconomics lies in the
microeconomic theory of general equilibrium.
After introductory materials on distributional ideology and distributional statistics, he presents both the macroeconomic and
microeconomic theory of distribution.
Advanced
Microeconomic Theory, Englewood Cliffs, NJ: Prentice Hall, 1991.
