Microeconomics and Behaviour, 4e

The fourth European edition of Microeconomics and Behaviour builds on its core analytical foundations, and embeds them in accessible and engaging real-world examples to demonstrate the relationship between economic thinking and analysis and human behaviour. By blending theory with practical application, students are encouraged to think like economists and critically assess the technical tools of microeconomics and to find more interesting and innovative ways of applying them, ultimately developing a lasting interest in the discipline. Key Features • Fully updated chapters, with new and expanded material on the economics of happiness, halo and decoy effects, price discrimination, the gig economy and self-employment, and partial versus general equilibrium. • Extensive pedagogical features including worked examples, key terms and definitions, in-chapter exercises, chapter summaries, and review questions to enhance understanding and retention • Economic Naturalist examples illustrate how economic principles can explain everyday experiences and observations. New examples include: “Why does an efficient health service not do everything to keep people alive?”, “Why did Taylor Swift fans not sell their tickets for The Eras Tour?” and “Why do most cryptocurrencies fail within a few years?” Connect® Resources Available on McGraw Hill’s Connect®, the well-established online learning platform, which features our award-winning adaptive reading experience as well as resources to help faculty and institutions improve student outcomes and course delivery efficiency. To learn more, visit mheducation.co.uk/connect   Key Connect® features for this edition include: • Economic Application Based Activities that provide students with valuable practice, using problem solving skills to apply their knowledge to realistic scenarios. Students’ progress from understanding basic concepts to using their knowledge to analyse complex scenarios and solve problems. • Economic Naturalist graphing questions which have been developed to complement this key pedagogical feature from the textbook. • Interactive Graphs that help students see the relevance of the subject matter by providing visual displays of real data for students to manipulate. All graphs are accompanied by assignable assessment questions and feedback for students. Edward J. Cartwright is a Professor of Economics at De Montfort University in the UK. He is also Director of the Institute for Applied Economics and Social Value. One of his passions is the use of interactive classroom experiments in economics teaching. His research has focused primarily on cooperation and coordination in economic and social behaviour.  Robert H. Frank is the Henrietta Johnson Louis Professor of Management and Professor of Economics at the Johnson Graduate School of Management at Cornell University, USA. He is also a Distinguished Senior fellow at Demos, USA. For more than a decade his ‘Economic View’ column appeared monthly in the New York Times. His research has focused on rivalry and cooperation in economic and social behaviour. This European edition is originally based on the Microeconomics and Behavior text by Robert Frank.

Table of Contents:
PART 1: Introduction  1 Thinking Like an Economist  2 Supply and Demand  3 Game Theory  PART 2: The Theory of Consumer Behaviour  4 Rational Consumer Choice  5 Individual and Market Demand  6 Applications of Rational Choice and Demand Theories  7 Choice under Uncertainty and the Economics of Information  8 Explaining Tastes: The Importance of Altruism and Other Non-Egoistic Behaviour  9 Cognitive Limitations and Consumer Behaviour  PART 3: The Theory of the Firm and Market Structure   10 Production  11 Costs  12 Perfect Competition  13 Monopoly  14 Imperfect Competition  PART 4: Factor Markets  15 Labour  16 Capital  PART 5: Externalities, Public Goods and Welfare  17 General Equilibrium and Market Efficiency  18 Externalities, Property Rights and the Coase Theorem  19 Government

About the Author :
Robert H. Frank is the H. J. Louis Professor of Management and Professor of Economics, emeritus, at Cornell’s Johnson School of Management, where he taught from 1972 to 2020. After receiving his B.S. from Georgia Tech in 1966, he taught math and science for two years as a Peace Corps Volunteer in rural Nepal. He received his M.A. in statistics in 1971 and his Ph.D. in economics in 1972 from The University of California at Berkeley. He also holds honorary doctorate degrees from the University of St. Gallen and Dalhousie University. During leaves of absence from Cornell, he has served as chief economist for the Civil Aeronautics Board (1978–1980), a Fellow at the Center for Advanced Study in the Behavioral Sciences (1992–1993), Professor of American Civilization at l’Ecole des Hautes Etudes en Sciences Sociales in Paris (2000–2001), and the Peter and Charlotte Schoenfeld Visiting Faculty Fellow at the NYU Stern School of Business in 2008–2009. His papers have appeared in the American Economic Review, Econometrica, the Journal of Polit-ical Economy, and other leading professional journals, and for more than two decades, his economics columns appeared regu-larly in The New York Times.His research has focused on rivalry and cooperation in economic and social behavior. His books on these themes include Choosing the Right Pond (Oxford, 1985), Passions Within Reason (W. W. Norton, 1988), What Price the Moral High Ground? (Princeton, 2004), Falling Behind (University of California Press, 2007), The Economic Naturalist (Basic Books, 2007), The Economic Naturalist’s Field Guide (Basic Books, 2009), The Darwin Economy (Princeton, 2011), Success and Luck (Princeton, 2016), and Under the Influence (Princeton, 2020), which have been translated into 24 languages. The Winner-Take-All Society (The Free Press, 1995), co-authored with Philip Cook, received a Critic’s Choice Award, was named a Notable Book of the Year by The New York Times, and was included in BusinessWeek’s list of the 10 best books of 1995. Luxury Fever (The Free Press, 1999) was named to the Knight-Ridder Best Books list for 1999. Professor Frank is a co-recipient of the 2004 Leontief Prize for Advancing the Frontiers of Economic Thought. He was awarded the Johnson School’s Stephen Russell Distinguished Teaching Award in 2004, 2010, 2012, and 2018, and the School’s Apple Distinguished Teaching Award in 2005. His introductory microeconomics course has graduated more than 7,000 enthusiastic economic naturalists over the years. Edward Cartwright is a Senior Lecturer for Economics at University of Kent.