Robert Frank’s Microeconomics and Behavior covers the essential topics of microeconomics while exploring the relationship between economics analysis and human behavior. The book’s clear narrative appeals to students, and its numerous examples help students develop economic intuition. This book introduces modern topics not often found in intermediate textbooks. Its focus throughout is to develop a student’s capacity to “think like an economist.” Table of Contents Part 1 Introduction 1 Thinking Like an Economist 2 Supply and Demand Part 2 The Theory of Consumer Behavior 3 Rational Consumer Choice 4 Individual and Market Demand 5 Applications of Rational Choice and Demand Theories 6 The Economics of Information and Choice under Uncertainty 7 Explaining Tastes: The Importance of Altruism and Other Nonegoistic Behavior 8 Cognitive Limitations and Consumer Behavior Part 3 The Theory of the Firm and Market Structure 9 Production 10 Costs 11 Perfect Competition 12 Monopoly 13 Imperfect Competition: A Game-Theoretic Approach Part 4 Factor Markets 14 Labor 15 Capital Part 5 Externalities, Public Good, and Welfare 16 Externalities, Property Rights, and the Coase Theorem 17 Government Index 18W General Equilibrium and Market Efficiency (online) About the Authors Robert H. Frank received his B.S. in mathematics from Georgia Tech in 1966, then taught math and science for two years as a Peace Corps Volunteer in rural Nepal. He received his M.A. in statistics from the University of California at Berkeley in 1971, and his Ph.D. in economics in 1972, also from U.C. Berkeley. He is the Goldwin Smith Professor of Economics at Cornell University, where he has taught since 1972 and where he currently holds a joint appointment in the department of economics and the Johnson Graduate School of Management. During leaves of absence from Cornell, he served as chief economist for the Civil Aeronautics Board from 1978 to 1980 and was a Fellow at the Center for Advanced Study in the Behavioral Sciences in 1992-93. He has published on a variety of subjects, including price and wage discrimination, public utility pricing, the measurement of unemployment spell lengths, and the distributional consequences of direct foreign investment. For the past several years, his research has focused on rivalry and cooperation in economic and social behavior. His books on these themes include Choosing the Right Pond: Human Behavior and the Quest for Status (Oxford University Press, 1985) and Passions Within Reason: The Strategic Role of the Emotions (W.W. Norton, 1988). He and Philip Cook are co-authors of The Winner-Take-All Society (The Free Press, 1995) , which received a Critic’s Choice Award and appeared on both the New York Times Notable Books list and Business Week Ten Best list for 1995. His most recent general interest publication is Luxury Fever (The Free Press, 1999). Professor Frank’s books have been translated into eight languages. He has been awarded an Andrew W. Mellon Professorship (1987 – 1990), a Kenan Enterprise Award (1993), and a Merrill Scholars Program Outstanding Educator Citation (1991). New Features New coverage of the efficient markets hypothesis. This behavioral analysis of the hypothesis has been added to Chapter 15, helping students understand the implications of consumer confidence on stock prices. Cleaner, more streamlined aesthetic that mirrors the core principles approach of the text. The design has also been pedagogically enriched to include pictures illustrating the economic naturalist examples that are a hallmark of the text, making it more accessible to students than ever. Fully updated throughout. All examples and data have been carefully examined and updated throughout the text, and the supplement program has undergone a similar treatment.