The authors use a capital budgeting example to show students how to incorporate price elasticity into financial analysis as an application of what students learn in their microeconomics course. They present simple as well as more advanced price-quantity relationships, and using various "what-if" scenarios; the authors show how risk…

In this article, the authors show that the dividend discount model can be derived using the basic intertemporal consumption model that is introduced in a typical intermediate microeconomics course. This result will be of use to instructors who teach microeconomics to finance students in that it demonstrates the value of utility maximization in…

No matter the college, a class in the principles of microeconomics is likely to cover the discipline's greatest hits. The author attends three economics courses at three colleges, and finds three very different approaches. In this article, the author discusses three colleges' different approaches that shape learning in Econ 101.

The authors shed light on the original equipment manufacturer's strategic behavior in the duopoly aftermarket. The original equipment manufacturer, firm 1, captures via its foremarket price some fraction of the aftermarket consumer surplus, where that surplus is generated by consumption of its own and its competitor's aftermarket products. The…

The author makes a pedagogical contribution to optimal income taxation. Using a very simple model adapted from George A. Akerlof (1978), he demonstrates a key result in the approach to public economics and welfare economics pioneered by Nobel laureate James Mirrlees. He shows how incomplete information, in addition to the need to preserve…

A standard and comprehensive model is needed to evaluate and compare technology transfer systems and the stakeholders within these systems. The principle systems considered include federal laboratories, U.S. universities, the rehabilitation engineering research centers (RERCs), and large small business innovation research programs. An earlier…

The following program description, literature review, and theoretical bases demonstrate the andragogical soundness of the two projects and a club of the Monterey Adult Transitions Program. The Bistro Project began as a suggestion of an Associate Superintendent, who ran a similar project in the Boston area. The Greenhouse Project began as a…

There is a well-documented, growing shortage of rehabilitation counseling professionals in the public sector. Using microeconomics principles, a theoretical model is offered to account for the personnel shortage and propose potential solutions to recruit and retain rehabilitation counselors in the public sector. Suggestions for rehabilitation…

The author combines the supply and demand model of taxes with a Cournot model of bribe takers to develop a simple and useful framework for understanding the effect of corruption on economic activity. There are many examples of corruption in both developed and developing countries. Because corruption decreases the level of economic activity and…

The author derives the probability that price discrimination improves social welfare, using a simple model of third-degree price discrimination assuming two independent linear demands. The probability that price discrimination raises social welfare increases as the preferences or incomes of consumer groups become more heterogeneous. He derives the…

The authors show how microeconomic concepts and principles are applicable to the study of terrorism. The utility maximization model provides insights into both terrorist resource allocation choices and government counterterrorism efforts, and basic game theory helps characterize the strategic interdependencies among terrorists and governments.…

Computer simulation of the Alonso household location model can enrich the intermediate microeconomics course. The model includes decisions on location, land space, and other goods and is a valuable complement to the usual textbook model of household consumption. It has three decision variables, one of which is a "bad," and one good's price is a…

This chapter introduces the key economic concepts, models, and methods that can help inform institutional research in higher education. (Contains 1 table and 9 figures.)