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Library of Congress Cataloging-in-Publication Data
CIP data on file with the Library of Congress.
1 17
ISBN 10: 0-13-451953-1

ISBN 13: 978-0-13-451953-1
A01_PERL9531_08_SE_FM.indd 4 12/7/16 10:34 AM

Brief Contents
Chapter 1 Introduction 1
Chapter 2 Supply and Demand 9
Chapter 3 Applying the Supply-and-Demand Model 43
Chapter 4 Consumer Choice 73
Chapter 5 Applying Consumer Theory 109
Chapter 6 Firms and Production 147
Chapter 7 Costs 179
Chapter 8 Competitive Firms and Markets 221
Chapter 9 Applying the Competitive Model 263
Chapter 10 General Equilibrium and Economic Welfare 307
Chapter 11 Monopoly 343
Chapter 12 Pricing and Advertising 383
Chapter 13 Oligopoly and Monopolistic Competition 425
Chapter 14 Game Theory 467
Chapter 15 Factor Markets 505
Chapter 16 Interest Rates, Investments, and Capital Markets 529
Chapter 17 Uncertainty 561
Chapter 18 Externalities, Open-Access, and Public Goods 595
Chapter 19 Asymmetric Information 625
Chapter 20 Contracts and Moral Hazards 653
Chapter Appendixes A-1
Answers to Selected Questions and Problems A-29
Sources for Challenges and Applications A-46
References A-60
Definitions A-69
Index A-75
Credits A-105

Contents
Chapter 1 Introduction 1 Solved Problem 2.4 30
Policies That Cause the Quantity Demanded
1.1 Microeconomics: The Allocation of Scarce to D
iffer from the Quantity Supplied 31
Resources 1 APPLICATION Venezuelan Price Ceilings
Trade-Offs 2 and Shortages 33
Who Makes the Decisions 2 Solved Problem 2.5 34
Prices Determine Allocations 2 Why the Quantity Supplied Need Not Equal
APPLICATION Twinkie Tax 2 the Quantity Demanded 35
1.2 Models 3 2.6 When to Use the Supply-and-Demand Model 36
APPLICATION Income Threshold Model CHALLENGE SOLUTION Quantities and
and China 3 Prices of Genetically Modified Foods 37
Simplifications by Assumption 4 Summary 38 ■ Questions 39
Testing Theories 4
Maximizing Subject to Constraints 5 Chapter 3 Applying the Supply-and-Demand
Positive Versus Normative 5
1.3 Uses of Microeconomic Models 7
Model 43
Summary 7 CHALLENGE Who Pays the Gasoline Tax? 43
3.1 How Shapes of Supply and Demand
Chapter 2 Supply and Demand 9 Curves Matter 44
3.2 Sensitivity of the Quantity Demanded to Price 45
CHALLENGE Quantities and Prices of Price Elasticity of Demand 45
Genetically Modified Foods 9 Solved Problem 3.1 46
2.1 Demand 10 APPLICATION The Demand Elasticities
The Demand Curve 11 for Google Play and Apple Apps 47
APPLICATION Calorie Counting 14 Elasticity Along the Demand Curve 47
The Demand Function 14 Demand Elasticity and Revenue 50
Solved Problem 2.1 16 Solved Problem 3.2 50
Summing Demand Curves 17 APPLICATION Amazon Prime 51
APPLICATION Aggregating Corn Demand Elasticities over Time 51
Demand Curves 17 Other Demand Elasticities 52
2.2 Supply 18 APPLICATION Anti-Smoking Policies
The Supply Curve 18 May Reduce Drunk Driving 53
The Supply Function 20 3.3 Sensitivity of the Quantity Supplied
Summing Supply Curves 21 to Price 54
How Government Import Policies Affect Elasticity of Supply 54
Supply Curves 21 Elasticity Along the Supply Curve 55
Solved Problem 2.2 22 Supply Elasticities over Time 56
2.3 Market Equilibrium 23 APPLICATION Oil Drilling in the Arctic
Using a Graph to Determine the Equilibrium 23 National Wildlife Refuge 56
Using Math to Determine the Equilibrium 23 Solved Problem 3.3 57
Forces That Drive the Market to Equilibrium 25 3.4 Effects of a Sales Tax 58
2.4 Shocking the Equilibrium 26 Effects of a Specific Tax on the Equilibrium 59
Effects of a Shock to the Supply Curve 26 The Equilibrium Is the Same No Matter
Solved Problem 2.3 27 Whom the Government Taxes 60
Effects of a Shock to the Demand Curve 28 Solved Problem 3.4 61
2.5 Effects of Government Interventions 28 Firms and Customers Share the Burden
Policies That Shift Supply Curves 28 of the Tax 61
APPLICATION Occupational Licensing 28 APPLICATION Taxes to Prevent Obesity 63

Contents vii
Solved Problem 3.5 63 Chapter 5 Applying Consumer Theory 109

Ad Valorem and Specific Taxes Have
Similar Effects 64 CHALLENGE Per-Hour Versus Lump-Sum
Solved Problem 3.6 65 Childcare Subsidies 109
Subsidies 66 5.1 Deriving Demand Curves 110
APPLICATION Subsidizing Ethanol 66 Indifference Curves and a Rotating
CHALLENGE SOLUTION Who Pays the Budget Line 111
Gasoline Tax? 67 Price-Consumption Curve 112
Summary 68 ■ Questions 69 APPLICATION Smoking Versus Eating
and Phoning 113
Chapter 4 Consumer Choice 73 The Demand Curve Corresponds to the
Price-Consumption Curve 113
CHALLENGE Why Americans Buy More Solved Problem 5.1 114
Ebooks Than Do Germans 73 5.2 How Changes in Income Shift Demand Curves 114
4.1 Preferences 75 Effects of a Rise in Income 115
Properties of Consumer Preferences 75 Solved Problem 5.2 116
APPLICATION You Can’t Have Too Consumer Theory and Income Elasticities 117
Much Money 76 APPLICATION Fast-Food Engel Curve 120
Preference Maps 77 5.3 Effects of a Price Change 121
Solved Problem 4.1 80 Income and Substitution Effects with
APPLICATION Indifference Curves a Normal Good 121
Between Food and Clothing 83 Solved Problem 5.3 123
4.2 Utility 84 Solved Problem 5.4 124
Utility Function 84 Income and Substitution Effects with
Ordinal Preferences 84 an Inferior Good 125
Utility and Indifference Curves 85 Solved Problem 5.5 125
Marginal Utility 86 ★ Compensating Variation and Equivalent
Utility and Marginal Rates of Substitution 87 Variation 126
4.3 Budget Constraint 88 APPLICATION What’s Your Smart Phone
Slope of the Budget Constraint 90 Worth to You? 127
Solved Problem 4.2 90 5.4 Cost-of-Living Adjustments 127
Effect of a Change in Price on the Inflation Indexes 127
Opportunity Set 91 Effects of Inflation Adjustments 129
Effect of a Change in Income on the APPLICATION Paying Employees to Relocate 131
Opportunity Set 92 5.5 Deriving Labor Supply Curves 133
Solved Problem 4.3 92 Labor-Leisure Choice 133
4.4 Constrained Consumer Choice 92 Income and Substitution Effects 135
The Consumer’s Optimal Bundle 93 Solved Problem 5.6 136
APPLICATION Substituting Alcohol for Shape of the Labor Supply Curve 137
Marijuana 95 APPLICATION Working After Winning
Solved Problem 4.4 95 the Lottery 138
Solved Problem 4.5 96 Income Tax Rates and Labor Supply 139
★ Optimal Bundles on Convex Sections of CHALLENGE SOLUTION Per-Hour Versus
Indifference Curves 97 Lump-Sum Childcare Subsidies 141
Buying Where More Is Better 98 Summary 142 ■ Questions 143
Food Stamps 98
APPLICATION Benefiting from
Chapter 6 Firms and Production 147
Food Stamps 100
4.5 Behavioral Economics 101 CHALLENGE More Productive Workers
Tests of Transitivity 101 During Downturns 147
Endowment Effect 101 6.1 The Ownership and Management of Firms 148
APPLICATION Opt In Versus Opt Out 102 Private, Public, and Nonprofit Firms 148
Salience and Bounded Rationality 103 APPLICATION Chinese State-Owned
APPLICATION Unaware of Taxes 104 Enterprises 149
CHALLENGE SOLUTION Why Americans The Ownership of For-Profit Firms 149
Buy More Ebooks Than Do Germans 104 The Management of Firms 150
Summary 105 ■ Questions 106 What Owners Want 150

viii Contents
6.2 Production 151 7.3 Long-Run Costs 194

Production Functions 151 All Costs Are Avoidable in the Long Run 194
Varying Inputs over Time 151 Minimizing Cost 194
6.3 Short-Run Production 152 Isocost Line 195
Total Product 152 Combining Cost and Production Information 197
Marginal Product of Labor 153 Solved Problem 7.3 198
Solved Problem 6.1 154 Factor Price Changes 200
Average Product of Labor 154 Solved Problem 7.4 201
Graphing the Product Curves 154 The Long-Run Expansion Path and the
Law of Diminishing Marginal Returns 156 Long-Run Cost Function 201
APPLICATION Malthus and the Green Solved Problem 7.5 203
Revolution 157 The Shape of Long-Run Cost Curves 203
6.4 Long-Run Production 158 APPLICATION 3D Printing 206
Isoquants 159 Estimating Cost Curves Versus Introspection 206
APPLICATION A Semiconductor Integrated 7.4 Lower Costs in the Long Run 207
Circuit Isoquant 162 Long-Run Average Cost as the Envelope
Substituting Inputs 163 of Short-Run Average Cost Curves 207
Solved Problem 6.2 164 APPLICATION A Beer Manufacturer’s
6.5 Returns to Scale 166 Long-Run Cost Curves 208
Constant, Increasing, and Decreasing Returns APPLICATION Should You Buy an Inkjet
to Scale 166 or a Laser Printer? 209
Solved Problem 6.3 167 Short-Run and Long-Run Expansion Paths 210
APPLICATION Returns to Scale in Various The Learning Curve 211
Industries 167 7.5 Cost of Producing Multiple Goods 212
Varying Returns to Scale 169 APPLICATION Medical Economies of Scope 214
6.6 Productivity and Technical Change 170 CHALLENGE SOLUTION Technology Choice
Relative Productivity 170 at Home Versus Abroad 214
Innovations 171 Summary 215 ■ Questions 216
APPLICATION Robots and the Food You Eat 172
APPLICATION A Good Boss Raises Chapter 8 Competitive Firms and Markets 221
Productivity 173
CHALLENGE SOLUTION Labor Productivity CHALLENGE The Rising Cost of Keeping
During Downturns 173 On Truckin’ 221
Summary 174 ■ Questions 175 8.1 Perfect Competition 222
Price Taking 222
Chapter 7 Costs 179 Why the Firm’s Demand Curve Is Horizontal 223
Deviations from Perfect Competition 224
CHALLENGE Technology Choice at Home Derivation of a Competitive Firm’s
Versus Abroad 179 Demand Curve 225
7.1 The Nature of Costs 180 Solved Problem 8.1 226
Opportunity Costs 180 Why We Study Perfect Competition 227
APPLICATION The Opportunity Cost of 8.2 Profit Maximization 227
an MBA 181 Profit 227
Solved Problem 7.1 182 Two Decisions for Maximizing Profit 229
Opportunity Cost of Capital 182 8.3 Competition in the Short Run 231
Sunk Costs 183 Short-Run Output Decision 232
7.2 Short-Run Costs 184 Solved Problem 8.2 234
Short-Run Cost Measures 184 Short-Run Shutdown Decision 235
APPLICATION The Sharing Economy APPLICATION Fracking and Shutdowns 237
and the Short Run 185 Solved Problem 8.3 238
Short-Run Cost Curves 186 Short-Run Firm Supply Curve 238
Production Functions and the Shape Short-Run Market Supply Curve 238
of Cost Curves 188 Short-Run Competitive Equilibrium 241
APPLICATION A Beer Manufacturer’s Solved Problem 8.4 242
Short-Run Cost Curves 191 8.4 Competition in the Long Run 243
Effects of Taxes on Costs 191 Long-Run Competitive Profit
Solved Problem 7.2 192 Maximization 243
Short-Run Cost Summary 193 Long-Run Firm Supply Curve 244

Contents ix
APPLICATION The Size of Ethanol Processing Solved Problem 9.7 292

Plants 245 APPLICATION The Social Cost of a Natural
Long-Run Market Supply Curve 245 Gas Price Ceiling 293
APPLICATION Entry and Exit of Solar 9.7 Comparing Both Types of Policies: Imports 294
Power Firms 246 Free Trade Versus a Ban on Imports 294
APPLICATION Upward-Sloping Long-Run APPLICATION Russian Food Ban 296
Supply Curve for Cotton 249 Free Trade Versus a Tariff 296
APPLICATION Reformulated Gasoline Free Trade Versus a Quota 299
Supply Curves 253 Rent Seeking 299
Solved Problem 8.5 254 CHALLENGE SOLUTION Liquor Licenses 300
Long-Run Competitive Equilibrium 255 Summary 302 ■ Questions 303
CHALLENGE SOLUTION The Rising Cost
of Keeping On Truckin’ 256 Chapter 10 General Equilibrium and
Summary 257 ■ Questions 258
Economic Welfare 307
Chapter 9 Applying the Competitive Model 263 CHALLENGE Anti-Price Gouging Laws 307
10.1 General Equilibrium 309
CHALLENGE Liquor Licenses 263 Feedback Between Competitive Markets 310
9.1 Zero Profit for Competitive Firms in Solved Problem 10.1 312
the Long Run 264 Minimum Wages with Incomplete Coverage 313
Zero Long-Run Profit with Free Entry 264 Solved Problem 10.2 315
Zero Long-Run Profit When Entry Is Limited 265 APPLICATION Urban Flight 316
APPLICATION What’s a Name Worth? 267 10.2 Trading Between Two People 316
The Need to Maximize Profit 267 Endowments 316
9.2 Consumer Welfare 267 Mutually Beneficial Trades 318
Measuring Consumer Welfare Using a Demand Solved Problem 10.3 320
Curve 268 Bargaining Ability 320
APPLICATION Willingness to Pay on eBay 270 10.3 Competitive Exchange 320
Effect of a Price Change on Consumer Surplus 271 Competitive Equilibrium 321
APPLICATION Goods with a Large Consumer The Efficiency of Competition 322
Surplus Loss from Price Increases 272 Obtaining Any Efficient Allocation Using
Solved Problem 9.1 273 Competition 323
9.3 Producer Welfare 273 10.4 Production and Trading 323
Measuring Producer Surplus Using a Supply Comparative Advantage 323
Curve 274 Solved Problem 10.4 325
Using Producer Surplus 275 Efficient Product Mix 327
Solved Problem 9.2 276 Competition 327
9.4 Competition Maximizes Welfare 276 10.5 Efficiency and Equity 329
Solved Problem 9.3 278 Role of the Government 329
APPLICATION Deadweight Loss of Christmas APPLICATION The 1% Grow Wealthier 330
Presents 280 Efficiency 332
9.5 Policies That Shift Supply and Demand Curves 281 Equity 332
Entry Barrier 282 APPLICATION How You Vote Matters 335
APPLICATION Welfare Effects of Allowing Efficiency Versus Equity 337
Fracking 282 CHALLENGE SOLUTION Anti-Price Gouging
9.6 Policies That Create a Wedge Between Laws 338
Supply and Demand 283 Summary 339 ■ Questions 339
Welfare Effects of a Sales Tax 283
APPLICATION The Deadweight Loss from
Gas Taxes 285
Chapter 11 Monopoly 343
Solved Problem 9.4 285 CHALLENGE Brand-Name and Generic Drugs 343
Welfare Effects of a Subsidy 286 11.1 Monopoly Profit Maximization 344
Solved Problem 9.5 287 Marginal Revenue 345
Welfare Effects of a Price Floor 288 Solved Problem 11.1 347
Solved Problem 9.6 290 Choosing Price or Quantity 349
APPLICATION How Big Are Farm Subsidies Graphical Approach 349
and Who Gets Them? 291 Mathematical Approach 351
Welfare Effects of a Price Ceiling 292 APPLICATION Apple’s iPad 352

x Contents
Solved Problem 11.2 352 APPLICATION Google Uses Bidding for

Effects of a Shift of the Demand Curve 353 Ads to Price Discriminate 394
11.2 Market Power 354 Transaction Costs and Perfect Price
Market Power and the Shape of the Demand Discrimination 395
Curve 355 12.3 Group Price Discrimination 395
APPLICATION Cable Cars and Profit APPLICATION Warner Brothers Sets Prices
Maximization 356 for a Harry Potter DVD 396
Lerner Index 357 Solved Problem 12.2 397
Solved Problem 11.3 357 Prices and Elasticities 398
Sources of Market Power 357 Solved Problem 12.3 398
11.3 Market Failure Due to Monopoly Pricing 358 Preventing Resale 399
Solved Problem 11.4 360 APPLICATION Reselling Textbooks 399
11.4 Causes of Monopoly 361 Solved Problem 12.4 399
Cost-Based Monopoly 361 Identifying Groups 401
Solved Problem 11.5 363 APPLICATION Buying Discounts 402
Government Creation of a Monopoly 363 Welfare Effects of Group Price Discrimination 403
APPLICATION Botox Patent Monopoly 364 12.4 Nonlinear Price Discrimination 404
11.5 Government Actions That Reduce 12.5 Two-Part Pricing 406
Market Power 366 Two-Part Pricing with Identical Customers 406
Regulating Monopolies 366 Two-Part Pricing with Nonidentical
Solved Problem 11.6 369 Consumers 407
APPLICATION Natural Gas Regulation 370 APPLICATION iTunes for a Song 409
Increasing Competition 371 12.6 Tie-In Sales 410
APPLICATION Movie Studios Attacked Requirement Tie-In Sale 410
by 3D Printers! 371 APPLICATION Ties That Bind 410
Solved Problem 11.7 372 Bundling 411
11.6 Networks, Dynamics, and Behavioral Solved Problem 12.5 413
Economics 373 12.7 Advertising 414
Network Externalities 373 The Decision Whether to Advertise 414
Network Externalities and Behavioral How Much to Advertise 415
Economics 374 APPLICATION Super Bowl Commercials 416
Network Externalities as an Explanation CHALLENGE SOLUTION Sale Prices 417
for Monopolies 374 Summary 418 ■ Questions 419
APPLICATION eBay’s Critical Mass 375
A Two-Period Monopoly Model 375 Chapter 13 Oligopoly and Monopolistic
CHALLENGE SOLUTION Brand-Name and
Competition 425
Generic Drugs 376
Summary 377 ■ Questions 378 CHALLENGE Government Aircraft Subsidies 425
13.1 Market Structures 427
Chapter 12 Pricing and Advertising 383 13.2 Cartels 428
Why Cartels Form 428
CHALLENGE Sale Prices 383 Why Cartels Fail 430
12.1 Conditions for Price Discrimination 385 Laws Against Cartels 430
Why Price Discrimination Pays 385 APPLICATION The Apple-Google-Intel-Adobe-
APPLICATION Disneyland Pricing 387 Intuit-Lucasfilms-Pixar Wage Cartel 432
Which Firms Can Price Discriminate 387 Maintaining Cartels 432
Preventing Resale 388 APPLICATION Cheating on the Maple
APPLICATION Preventing Resale of Syrup Cartel 433
Designer Bags 388 Mergers 434
Not All Price Differences Are Price APPLICATION Mergers to Monopolize 435
Discrimination 389 13.3 Cournot Oligopoly 435
Types of Price Discrimination 389 The Duopoly Nash-Cournot Equilibrium 436
12.2 Perfect Price Discrimination 390 Equilibrium, Elasticity, and the Number
How a Firm Perfectly Price Discriminates 390 of Firms 440
Perfect Price Discrimination Is Efficient but Harms APPLICATION Mobile Number Portability 442
Some Consumers 391 Nonidentical Firms 442
APPLICATION Botox and Price Discrimination 393 Solved Problem 13.1 444

Contents xi
13.4 Stackelberg Oligopoly 446 Reciprocity 497

Graphical Model 447 CHALLENGE SOLUTION Intel and AMD’s
Solved Problem 13.3 448 Advertising Strategies 497
Why Moving Sequentially Is Essential 449 Summary 498 ■ Questions 499
Comparison of Competitive, Stackelberg,
Cournot, and Collusive Equilibria 449 Chapter 15 Factor Markets 505
13.5 Bertrand Oligopoly 451
Identical Products 451 CHALLENGE Athletes’ Salaries and Ticket
Differentiated Products 452 Prices 505
APPLICATION Bottled Water 454 15.1 Competitive Factor Market 506
13.6 Monopolistic Competition 455 Short-Run Factor Demand of a Firm 506
APPLICATION Monopolistically Competitive Solved Problem 15.1 509
Food Truck Market 455 Solved Problem 15.2 511
Equilibrium 456 Long-Run Factor Demand 511
Solved Problem 13.4 457 Factor Market Demand 512
Fixed Costs and the Number of Firms 458 Competitive Factor Market Equilibrium 514
Solved Problem 13.5 459 15.2 Effects of Monopolies on Factor Markets 515
APPLICATION Zoning Laws as a Barrier Market Structure and Factor Demands 515
to Entry by Hotel Chains 459 A Model of Market Power in Input and Output
CHALLENGE SOLUTION Government Aircraft Markets 516
Subsidies 460 APPLICATION Unions and Profits 519
Summary 462 ■ Questions 462 Solved Problem 15.3 520
15.3 Monopsony 521
Chapter 14 Game Theory 467 Monopsony Profit Maximization 521
APPLICATION Monopsony and the
CHALLENGE Intel and AMD’s Advertising Gender Wage Gap 523
S trategies 467 Welfare Effects of Monopsony 523
14.1 Static Games 469 Solved Problem 15.4 524
Normal-Form Games 470 CHALLENGE SOLUTION Athletes’ Salaries and
Failure to Maximize Joint Profits 474 Ticket Prices 525
APPLICATION Strategic Advertising 476 Summary 526 ■ Questions 527
Multiple Equilibria 477
Solved Problem 14.1 477 Chapter 16 Interest Rates, Investments,
Mixed Strategies 478 and Capital Markets 529
APPLICATION Tough Love 480
Solved Problem 14.2 480 CHALLENGE Does Going to College Pay? 529
14.2 Repeated Dynamic Games 481 16.1 Comparing Money Today to Money
Strategies and Actions in Dynamic Games 481 in the Future 530
Cooperation in a Repeated Prisoners’ Interest Rates 531
Dilemma Game 482 Using Interest Rates to Connect the Present
Solved Problem 14.3 483 and Future 533
14.3 Sequential Dynamic Games 483 APPLICATION Power of Compounding 533
Game Tree 483 Stream of Payments 534
Subgame Perfect Nash Equilibrium 485 Solved Problem 16.1 536
Credibility 486 APPLICATION Saving for Retirement 537
Dynamic Entry Game 487 Inflation and Discounting 538
Solved Problem 14.4 489 APPLICATION Winning the Lottery 540
APPLICATION Keeping Out Casinos 490 16.2 Choices over Time 540
Solved Problem 14.5 490 Investing 541
14.4 Auctions 491 Solved Problem 16.2 542
Elements of Auctions 492 Solved Problem 16.3 543
Bidding Strategies in Private-Value Rate of Return on Bonds 543
Auctions 493 ★ Behavioral Economics: Time-Varying
Winner’s Curse 494 Discounting 544
APPLICATION Bidder’s Curse 495 APPLICATION Falling Discount Rates
14.5 Behavioral Game Theory 496 and Self-Control 545
APPLICATION GM’s Ultimatum 496 16.3 Exhaustible Resources 546
An Experiment 496 When to Sell an Exhaustible Resource 546

xii Contents
Price of a Scarce Exhaustible Resource 547 18.2 The Inefficiency of Competition

APPLICATION Redwood Trees 550 with Externalities 597
Why Price May Be Constant or Fall 550 APPLICATION Global Warming 600
16.4 Capital Markets, Interest Rates, 18.3 Regulating Externalities 600
and Investments 552 Emissions Standard 602
Solved Problem 16.4 553 Emissions Fee 602
CHALLENGE SOLUTION Does Going to Solved Problem 18.1 603
College Pay? 554 APPLICATION Why Tax Drivers 604
Summary 556 ■ Questions 556 Benefits Versus Costs from Controlling
Pollution 604
Chapter 17 Uncertainty 561 APPLICATION Protecting Babies 604
18.4 Market Structure and Externalities 605
CHALLENGE BP and Limited Liability 561 Monopoly and Externalities 605
17.1 Assessing Risk 563 Monopoly Versus Competitive Welfare
Probability 563 with Externalities 606
Expected Value 564 Solved Problem 18.2 607
Solved Problem 17.1 565 Taxing Externalities in Noncompetitive
Variance and Standard Deviation 566 Markets 607
17.2 Attitudes Toward Risk 567 18.5 Allocating Property Rights to Reduce
Expected Utility 567 Externalities 607
Risk Aversion 568 Coase Theorem 608
Solved Problem 17.2 570 APPLICATION Buying a Town 609
APPLICATION Stocks’ Risk Premium 571 Markets for Pollution 610
Risk Neutrality 571 APPLICATION Acid Rain Cap-and-Trade
Risk Preference 572 Program 610
APPLICATION Gambling 572 Markets for Positive Externalities 611
17.3 Reducing Risk 573 18.6 Rivalry and Exclusion 611
Just Say No 574 Open-Access Common Property 611
Obtain and Use Information 574 APPLICATION Road Congestion 612
Diversify 574 Club Goods 613
APPLICATION Failure to Diversify 576 APPLICATION Software Piracy 613
Buy Insurance 577 Public Goods 614
APPLICATION Flight Insurance 579 APPLICATION Free Riding on Measles
APPLICATION Limited Insurance for Vaccinations 616
Natural Disasters 580 APPLICATION What’s Their Beef? 617
17.4 Investing Under Uncertainty 581 CHALLENGE SOLUTION Trade and
Risk-Neutral Investing 582 Pollution 619
Risk-Averse Investing 583 Summary 620 ■ Questions 621
Solved Problem 17.4 583
17.5 Behavioral Economics of Uncertainty 584 Chapter 19 Asymmetric Information 625
Biased Assessment of Probabilities 584
APPLICATION Biased Estimates 585 CHALLENGE Dying to Work 625
Violations of Expected Utility Theory 585 19.1 Adverse Selection 627
Prospect Theory 587 Insurance Markets 627
APPLICATION Loss Aversion Contracts 589 Products of Unknown Quality 628
CHALLENGE SOLUTION BP and Limited Solved Problem 19.1 631
Liability 589 Solved Problem 19.2 631
Summary 590 ■ Questions 591 19.2 Reducing Adverse Selection 632
Equalizing Information 632
Chapter 18 Externalities, Open-Access, APPLICATION Discounts for Data 633
and Public Goods 595 APPLICATION Adverse Selection and
R
emanufactured Goods 635
CHALLENGE Trade and Pollution 595 Restricting Opportunistic Behavior 636
18.1 Externalities 596 19.3 Price Discrimination Due to False Beliefs
APPLICATION Negative Externalities from Spam 597 About Quality 636

Contents xiii
APPLICATION Reducing Consumers’ Chapter Appendixes A-1

Information 637
19.4 Market Power from Price Ignorance 637 Appendix 2A: Regressions A-1
Tourist-Trap Model 638 Appendix 3A: Effects of a Specific Tax
Solved Problem 19.3 639 on Equilibrium A-3
Advertising and Prices 640 Appendix 4A: Utility and Indifference Curves A-4
19.5 Problems Arising from Ignorance Appendix 4B: Maximizing Utility A-6
When Hiring 640 Appendix 5A: The Slutsky Equation A-8
Cheap Talk 640 Appendix 5B: Labor-Leisure Model A-9
APPLICATION Cheap Talk in eBay’s Appendix 6A: Properties of Marginal
Best Offer Market 642 and Average Product Curves A-10
Education as a Signal 642 Appendix 6B: The Slope of an Isoquant A-10
Solved Problem 19.4 644 Appendix 6C: Cobb-Douglas Production
Screening in Hiring 646 Function A-10
CHALLENGE SOLUTION Dying to Work 648 Appendix 7A: Minimum of the Average
Summary 649 ■ Questions 650 Cost Curve A-11
Appendix 7B: Japanese Beer Manufacturer’s
Short-Run Cost Curves A-11
Chapter 20 Contracts and Moral Hazards 653 Appendix 7C: Minimizing Cost A-12
CHALLENGE Clawing Back Bonuses 653 Appendix 8A: The Elasticity of the Residual
20.1 The Principal-Agent Problem 655 Demand Curve A-14
Efficiency 656 Appendix 8B: Profit Maximization A-15
Symmetric Information 656 Appendix 9A: Demand Elasticities and Surplus A-15
Asymmetric Information 657 Appendix 11A: Relationship Between a
Solved Problem 20.1 658 Linear Demand Curve and Its Marginal
APPLICATION Honest Cabbie? 659 Revenue Curve A-16
20.2 Using Contracts to Reduce Moral Appendix 11B: Incidence of a Specific Tax
Hazard 659 on a Monopoly A-16
Fixed-Fee Contracts 660 Appendix 12A: Perfect Price Discrimination A-17
Contingent Contracts 661 Appendix 12B: Group Price Discrimination A-18
APPLICATION Health Insurance and Appendix 12C: Block Pricing A-18
Moral Hazard 661 Appendix 12D: Two-Part Pricing A-19
Solved Problem 20.2 662 Appendix 12E: Profit-Maximizing
Solved Problem 20.3 663 Advertising and Production A-19
APPLICATION Sing for Your Supper 664 Appendix 13A: Nash-Cournot Equilibrium A-20
Solved Problem 20.4 666 Appendix 13B: Nash-Stackelberg Equilibrium A-22
Choosing the Best Contract 667 Appendix 13C: Nash-Bertrand Equilibrium A-23
20.3 Monitoring to Reduce Moral Hazard 667 Appendix 15A: Factor Demands A-24
Bonding 668 Appendix 15B: Monopsony A-25
Solved Problem 20.5 669 Appendix 16A: The Present Value of
APPLICATION Capping Oil and Gas Payments over Time A-26
Bankruptcies 670 Appendix 18A: Welfare Effects of Pollution
Deferred Payments 671 in a Competitive Market A-26
Efficiency Wages 672 Appendix 20A: Nonshirking Condition A-28
Monitoring Outcomes 673
20.4 Checks on Principals 673 Answers to Selected Questions and Problems A-29
APPLICATION Layoffs Versus Pay Cuts 674 Sources for Challenges and Applications A-46
20.5 Contract Choice 676 References A-60
CHALLENGE SOLUTION Clawing Back Definitions A-69
Bonuses 677 Index A-75
Summary 678 ■ Questions 679 Credits A-105

Preface
When I was a student, I fell in love with microeconomics because it cleared up many
mysteries about the world and provided the means to answer new questions. I wrote
this book to illustrate that economic theory has practical, problem-solving uses and
is not an empty academic exercise.
This book shows how individuals, policy makers, lawyers and judges, and firms
can use microeconomic tools to analyze and resolve problems. For example, students
learn that
■■ individuals can draw on microeconomic theories when deciding about issues
such as whether to invest and whether to sign a contract that pegs prices to the
government’s measure of inflation;
■■ policy makers (and voters) can employ microeconomics to predict the impact
of taxes, regulations, and other measures before they are enacted;
■■ lawyers and judges can use microeconomics in antitrust, discrimination, and
contract cases; and
■■ firms can apply microeconomic principles to produce at minimum cost and
maximize profit, select strategies, decide whether to buy from a market or
to produce internally, and write contracts to provide optimal incentives for
employees.
My experience in teaching microeconomics for the departments of economics at
MIT; the University of Pennsylvania; and the University of California, Berkeley; the
Department of Agricultural and Resource Economics at Berkeley; and the Wharton
Business School has convinced me that students prefer this emphasis on real-world
issues.
How This Book Differs from Others

This book differs from other microeconomics texts in three main ways:
■■ It places greater emphasis than other texts on modern theories—such as indus-
trial organization theories, game theory, transaction cost theory, information
theory, contract theory, and behavioral economics—that are useful in analyzing
actual markets.
■■ It uses real-world economic examples to present the basic theory and offers
many more Applications to a variety of real-world situations.
■■ It employs step-by-step problem-based learning to demonstrate how to use
microeconomic theory to solve business problems and analyze policy issues.
Modern Theories
This book has all of the standard economic theory, of course. However, what sets it
apart is its emphasis on modern theories that are particularly useful for understanding
how firms behave and the effects of public policy.

Preface xv
Industrial Organization How do firms differentiate their products to increase their

profits? When does market outcome depend on whether firms set prices or quantities?
What effects do government price regulations have on firms’ behavior? Industrial
organization theories address these and many other questions.
Game Theory What’s the optimal way to bid in an auction? How do firms set prices
to prevent entry of rival firms? What strategy should parents use when their college-
graduate child moves back in with them? Game theory provides a way of thinking
about strategies and it provides methods to choose optimal strategies.
Contract Theory What kind of a contract should a firm offer a worker to induce the
employee to work hard? How do people avoid being exploited by other people who
have superior information? Modern contract theory shows how to write contracts
to avoid or minimize such problems.
Behavioral Economics Should a firm allow workers to opt in or opt out of a

retirement system? How should people respond to ultimatums? We address questions
such as these using behavioral economics—one of the hottest new areas of economic
theory—which uses psychological research and theory to explain why people deviate
from rational behavior.
Real-World Economics
This book demonstrates that economics is practical and provides a useful way to
understand actual markets and firms’ and consumers’ decisions in two ways. First,
it presents the basic theory using models estimated with real-world data. Second, it
uses the theory to analyze hundreds of real-world applications.
Using Estimated Models to Illustrate Theory The text presents the basic theory
using estimated demand curves, supply curves, production functions, and cost func-
tions in most chapters. For example, students learn how imported oil limits the price
that U.S. oil producers can charge based on estimated supply and demand curves,
derive a Japanese beer manufacturer’s cost curve using an estimated production func-
tion, examine the regulation of natural gas monopolies employing estimated demand
and cost curves, and analyze oligopoly firms’ strategies using estimated demand
curves and cost and profit data from the real-world rivalries between United Airlines
and American Airlines and between Coke and Pepsi.
Applications Applications use economic theory to predict the price effect of allow-
ing drilling in the Arctic National Wildlife Refuge based on estimated demand and
supply curves, demonstrate how iTunes price increases affect music downloads using
survey data, explain why some top-end designers limit the number of designer bags
customers can buy, analyze why Amazon raised the price for its Prime service, and
measure the value of using the Internet.
Problem-Based Learning
People, firms, and policy makers have to solve economic problems daily. This book
uses a problem-solving approach to demonstrate how economic theory can help them
make good decisions.
Solved Problems After the introductory chapter, each chapter provides an average
of over five Solved Problems. Each Solved Problem poses a qualitative or quantita-
tive question and then uses a step-by-step approach to model good problem-solving

xvi Preface
techniques. These issues include whether Peter Guber and Joe Lacob should have
bought the Golden State Warriors, how to determine Intel’s and AMD’s profit-
maximizing quantities and prices using their estimated demand curves and marginal
costs, and how regulating a monopoly’s price affects consumers and firms.
Challenges Starting with Chapter 2, each chapter begins with a Challenge that
presents information about an important, current real-world issue and concludes
with a series of questions about that material. At the end of the chapter, a Challenge
Solution answers these questions using methods presented in that chapter. That is, a
Challenge combines an Application and a Solved Problem to motivate the material in
the chapter. The issues covered include the price and quantity effects from introduc-
ing genetically modified foods, why Americans buy more ebooks than do Germans,
whether higher salaries for star athletes raise ticket prices, whether it pays to go to
college, and how Heinz can use sales to increase its profit on ketchup.
End-of-Chapter Questions Starting with Chapter 2, each chapter ends with an

extensive set of Questions, many of which draw on topical, real-world issues. Each
Solved Problem and Challenge has at least one associated end-of-chapter question
that references them and asks students to extend or reapply their analyses. Many of
the Questions relate to the Applications. Answers to selected end-of-chapter Ques-
tions appear at the end of the book, and all of the end-of-chapter Questions are
available in MyEconLab for self-assessment, homework, or testing.
What’s New in the Eighth Edition

The Eighth Edition of Microeconomics is substantially updated and modified based
on the extremely helpful suggestions of faculty and students who used the first seven
editions. The major changes in this edition are:
■■ All the Challenges and almost all the examples and Applications throughout
the book are updated or new.
■■ The book has several new and many revised Solved Problems.
■■ Many of the end-of-chapter Questions are new, updated, or revised.
■■ All chapters are revised.
■■ Each substantive chapter has a new feature, in which we analyze a Common
Confusion.
(And, possibly most importantly, the book has two new cartoons.)
Challenges, Solved Problems, and Questions

All of the Challenges are new or updated. Because users requested more Solved
Problems, I increased the number of Challenges and Solved Problems in this edition
to 111, many of which are new or substantially revised. Every Solved Problem has
at least one associated Question at the end of the chapter.
About 40% of these Solved Problems refer to real-world events. Many of these
are associated with an adjacent Application or example in the text. In addition to the
Challenges, examples of a paired Application and Solved Problem include the effect
of oil drilling in the Arctic National Wildlife Refuge on prices, the opportunity cost
of getting an MBA, the social cost of a natural gas price ceiling, Apple’s iPad pricing,
and the price effects of reselling textbooks bought abroad in the United States.

Preface xvii
Starting with Chapter 2, the end of each chapter has an average of over 42 verbal,
graphical, and mathematical Questions. This edition has 810 Questions, 47 more
than in the previous edition. Over 12% of the Questions are new or updated. Many
of these Questions refer to recent real-life events and issues drawn from newspapers,
journal articles, and other sources.
Applications
The Eighth Edition has 133 Challenges and Applications, 4 more than in the previ-
ous edition. Of these, 35% are new and 53% are updated, so that 87% are new or
updated. The vast majority of the Applications cover events in 2015 and 2016, a
few deal with historical events, and the remaining ones examine timeless material.
To make room for the new Applications, older Applications from the Seventh
Edition were moved to MyEconLab. Also, several new ones have been added to the
hundreds of Applications and other materials in MyEconLab.
New and Revised Material in Chapters

I have revised every chapter—including most sections. Every chapter has new and
updated Applications and Challenges. Virtually every chapter has updated examples
and statistics. Some of the larger changes include:
■■ Chapters 2 and 3 are substantially rewritten. They illustrate the basic supply-
and-demand theory using empirical estimates from the avocados, coffee, corn,
ethanol, and oil markets. The major coffee example is new to this edition. Three
Solved Problems are significantly revised.
■■ Chapters 4 and 5 are reorganized and significantly revised, particularly the
section Cost-of-Living-Adjustments in Chapter 5.
■■ Chapter 6 has a substantially modified section, Production, and light revisions
elsewhere.
■■ Chapter 7 is moderately revised, particularly the material associated with
Figure 7.2.
■■ Chapter 8 is substantially revised, particularly the beginning of the Two Steps
to Maximizing Profit section, the discussion of the shutdown decision, the
Competition in the Short Run section, the section on Entry and Exit, and the
section Long-Run Market Supply When Input Prices Vary with Output, as well
as several figures.
■■ Chapter 9 is substantially rewritten, particularly the introduction, the section
on Policies That Shift Supply and Demand Curves, the discussion of trading
oil, which uses a new estimated model. In this chapter and following chapters,
deadweight loss is expressed as a negative number consistently.
■■ Chapter 10 a Solved Problem, the comparison of Pareto superiority, and the
material of Efficiency and Equity are rewritten.
■■ Chapter 11 has two new Solved Problems and all the material on Apple is
revised.
■■ Chapter 12 is moderately revised throughout, the group discrimination mate-
rial is reorganized and significantly revised, and the two-part pricing material
is lightly revised. It contains a new Solved Problem.
■■ Chapter 13 is significantly revised. The section Cartels is reorganized and
rewritten. The sections Cournot Oligopoly and Comparison of Competitive,
Stackelberg, Cournot, and Collusive Equilibria are rewritten.
■■ Chapter 14 has two new Solved Problems. The static game section is completely
reorganized and rewritten. The dynamic game section is significantly revised.
The chapter has a new discussion of double auctions.

xviii Preface
■■ Chapter 15 has a modified Table 15.1, Figures 15.9 and 15.10, and a discus-
sion of monopsony.
■■ Chapter 16 has two rewritten Solved Problems and many facts are updated.
■■ Chapter 17 has a rewritten discussion of framing, a significantly modified
Solved Problem, a new introduction to the section on Reducing Risk, and a
new subsection Just Say No.
■■ Chapter 18 has substantially revised sections on the Coase Theorem, club
goods, and public goods.
■■ Chapter 19 is moderately rewritten and has a substantially revised Solved
Problem.
■■ Chapter 20 has a new Challenge Solution.
A New Feature: Common Confusions

A new feature in this edition are discussions of Common Confusions—widely held
but false beliefs. After Chapter 1, every chapter has at least one Common Confusion.
We use economic theory to explain why these beliefs are incorrect.
Alternative Organizations
Because instructors cover material in different orders, I designed this textbook for
maximum flexibility. The most common approach to teaching microeconomics is to
follow the sequence of the chapters in the first half of this book: supply and demand
(Chapters 2 and 3), consumer theory (Chapters 4 and 5), the theory of the firm
(Chapters 6 and 7), and the competitive model (Chapters 8 and 9). Many instructors
then cover monopoly (Chapter 11), price discrimination (Chapter 12), oligopoly
(Chapters 13 and 14), input markets (Chapter 15), uncertainty (Chapter 17), and
externalities (Chapter 18).
A common variant is to present uncertainty (Sections 17.1 through 17.3) immedi-
ately after consumer theory. Many instructors like to take up welfare issues between
discussions of the competitive model and noncompetitive models, as Chapter 10, on
general equilibrium and economic welfare, does. Alternatively, some instructors cover
this chapter at the end of the course. Faculty can assign material on factor markets
earlier: Section 15.1 could follow the chapters on competition, and the remaining
sections could follow Chapter 11. The material in Chapters 14–20 can be presented in
a variety of orders, though Chapter 20 should follow Chapter 19 if both are covered,
and Section 17.4 should follow Chapter 16.
Many business school courses skip consumer theory (and possibly some aspects of
supply and demand, such as Chapter 3) to allow more time for consideration of the
topics covered in the second half of this book. Business school faculty may want to
place particular emphasis on game and theory strategies (Chapter 14), capital markets
(Chapter 16), and modern contract theory (Chapters 19 and 20).
Optional, technically demanding sections are marked with a star (★). Subsequent
sections and chapters can be understood even if these sections are skipped.
MyEconLab
MyEconLab’s powerful assessment and tutorial system works hand-in-hand with the
Eighth Edition of Microeconomics. It includes comprehensive homework, quiz, test,
and tutorial options, allowing students to test their knowledge and instructors to
manage all assessment needs in one program. Students and instructors can register,

Preface xix
create, and access all of their MyLab courses, regardless of discipline, from one con-
venient online location: http://www.pearsonmylab.com.
Key features in the MyEconLab course for Microeconomics Eighth Edition include
the following resources for students and instructors:
■■ Enhanced Pearson eText. The Enhanced eText helps students to learn on their
own by helping them better understand course material. The worked examples,
animations, and interactive tutorials bring learning to life. Students can apply
these concepts using self-assessment, algorithmic exercises in MyLab, providing
students with a complete digital learning experience.
■■ MyEconLab Videos. Key figures and concepts from the textbook are presented
in step-by-step animations with audio explanations of the action. These new
videos are embedded in the eText and accessible through MyEconLab.
■■ MyEconLab Solved Problems. Many students have difficulty applying econom-
ics concepts to solving problems. The goal of this digital resource is to help
students overcome this hurdle by learning how to solve an economic problem
by breaking it down into steps. Each Solved Problem in MyEconLab and the
eText also includes at least one additional graded practice exercise for students.
These interactive tutorials help students apply basic problem-solving skills to
homework, quizzes, and exams. The goal is for students to build skills they can
use to analyze real-world economic issues they hear and read about in the news.
■■ Additional Readings (Applications, Supplemental Material, and Solved Prob-
lems). Additional Applications, Supplemental Material, and Solved Problems
are available in MyEconLab.
■■ NEW: Math Review Exercises in MyEconLab. MyEconLab now offers a rich
array of assignable and auto-graded exercises covering fundamental math con-
cepts geared specifically to principles and intermediate economics students.
■■ Practice. Algorithmically generated homework and study plan exercises with
instant feedback ensure varied and productive practice that help students
improve their understanding and prepare for quizzes and tests. Many exercises
require the student to draw figures or solve mathematic problems.
■■ Learning Resources. Personalized learning aids such as Help Me Solve This
problem walkthroughs, Teach Me explanations of the underlying concept, and
figure Animations provide on-demand help when students need it most.
■■ Personalized Study Plan. The Study Plan acts as a tutor, providing personalized
recommendations for each student based on his or her demonstrated ability to
master the learning objectives in your course. Consequently, students focus on
precisely the areas they need to review using customized practice and learning
aids—such as videos and eText, tutorials. You can use the report available in the
Gradebook to lecture on the material for which students need the most support.
■■ Learning Catalytics. Learning Catalytics™ helps you generate class discussion,
customize your lecture, and promote peer-to-peer learning with real-time ana-
lytics. Learning Catalytics allows students to use their smart phones, tablets,
or laptops to respond to your questions or to engage in interactive tasks during
class. You can use this information to adjust your teaching strategy in real time.
■■ Current News Exercises. Every week, Pearson scours the news, finds a current
article appropriate for a microeconomics course and adds a gradable exercise
based on it to MyEconLab.
■■ Reporting Dashboard. Faculty can view, analyze, and report learning outcomes
clearly and easily using the Reporting Dashboard. It is available via the Grade-
book and fully mobile-ready. The Reporting Dashboard presents student per-
formance data at the class, section, and program levels in an accessible, visual
manner.

xx Preface
■■ LMS Integration. You can now link to MyEconLab from Blackboard Learn,
Brightspace by D2L, Canvas, or Moodle. Thus, you can directly access
MyEconLab assignments, rosters, and resources. You can also synchronize
grades with your LMS gradebook. Students need sign-on only once to obtain
access to all their personalized learning resources.
■■ Mobile Ready. Students and instructors can access multimedia resources and
complete assessments from any mobile device.
■■ Experiments in MyEconLab. Flexible, easy to assign, auto-graded, and avail-
able in Single and Multiplayer versions, the Experiments in MyEconLab make
learning fun and engaging.
For more information, visit http://www.myeconlab.com.
Supplements
A full range of supplementary materials to support teaching and learning accompa-
nies this book.
■■ The Online Instructor’s Manual revised by Leonie Stone has many useful and
creative teaching ideas. It also offers a chapter outline, additional discussion
questions, additional questions and problems, and solutions for all additional
questions and problems.
■■ The Online Solutions Manual provides solutions for all the end-of-chapter ques-
tions in the text.
■■ The Online Test Bank by Lourenço Paz of Syracuse University features prob-
lems of varying levels of complexity, suitable for homework assignments and
exams. Many of these multiple-choice questions draw on current events.
■■ The Computerized Test Bank reproduces the Test Bank material in the Test-
Gen software, which is available for Windows and Macintosh. With TestGen,
instructors can easily edit existing questions, add questions, generate tests, and
print the tests in a variety of formats.
■■ The Online PowerPoint Presentation by Ting Levy of Florida Atlantic Uni-
versity contains text figures and tables, as well as lecture notes. These slides
allow instructors to walk through examples from the text during in-class
presentations.
These teaching resources are available online for download at the Instructor
Resource Center, http://www.pearsonhighered.com, and on the catalog page for
Microeconomics. This title is available as an eBook and can be purchased at most
eBook retailers.
Acknowledgments
My greatest debt is to my students. My students at MIT; the University of Pennsyl-
vania; and the University of California, Berkeley, patiently dealt with my various
approaches to teaching them microeconomics and made useful (and generally polite)
suggestions.
Over the years, many excellent research assistants—Hayley Chouinard, R. Scott
Hacker, Guojun He, Nancy McCarthy, Enrico Moretti, Yann Panassie, Lisa Perloff,
Asa Sajise, Hugo Salgado, Gautam Sethi, Edward Shen, Klaas van ’t Veld, and Ximing
Wu—worked hard to collect facts, develop examples and figures, and check material.

Preface xxi
Many people were very generous in providing me with data, models, and exam-
ples, including among others: Thomas Bauer (University of Bochum), Peter Berck
(University of California, Berkeley), James Brander (University of British Columbia),
Leemore Dafny (Northwestern University), Lucas Davis (University of California,
Berkeley), James Dearden (Lehigh University), Farid Gasmi (Université des Sciences
Sociales), Avi Goldfarb (University of Toronto), Claudia Goldin (Harvard Univer-
sity), Rachel Goodhue (University of California, Davis), William Greene (New York
University), Nile Hatch (University of Illinois), Larry Karp (University of Califor-
nia, Berkeley), Ryan Kellogg (University of Michigan), Arthur Kennickell (Federal
Reserve, Washington), Fahad Khalil (University of Washington), Lutz Kilian (Univer-
sity of Michigan), Christopher Knittel (University of California, Davis), Jean-Jacques
Laffont (deceased), Ulrike Malmendier (University of California, Berkeley), Karl D.
Meilke (University of Guelph), Eric Muehlegger (Harvard University), Giancarlo
Moschini (Iowa State University), Michael Roberts (North Carolina State University),
Wolfram Schlenker (Columbia University), Junichi Suzuki (University of Toronto),
Catherine Tucker (MIT), Harald Uhlig (University of Chicago), Quang Vuong (Uni-
versité des Sciences Sociales, Toulouse, and University of Southern California), and
Joel Waldfogel (University of Minnesota).
Writing a textbook is hard work for everyone involved. I am grateful to the many
teachers of microeconomics who spent untold hours reading and commenting on
proposals and chapters. Many of the best ideas in this book are due to them.
I am particularly grateful to Jim Brander of the University of British Columbia who
provided material for Chapters 13 and 14, has given me many deep and insightful
comments on many editions of this book, and with whom I wrote another, related
book. Much of the new material in this edition was jointly written with him. My
other biggest debt is to James Dearden, Lehigh University, who made extremely
insightful comments on all previous editions and wrote some of the end-of-chapter
questions.
In earlier editions, Peter Berck made major contributions to Chapter 16. Charles
F. Mason made particularly helpful comments on many chapters. Larry Karp helped
me to develop two of the sections and carefully reviewed the content of several oth-
ers. Robert Whaples, Wake Forest University, read many chapters in earlier editions
and offered particularly useful comments. He also wrote the first draft of one of my
favorite Applications.
For this edition, my biggest debts are to Tony Lima and Gordon Lenjosek. Tony
prepared the many, many MyEconLab Videos and made substantive comments. Gor-
don extremely carefully checked for typographic and substantive errors in the previ-
ous edition and suggested better ways to present many topics. I am grateful to the
following people who reviewed the book or sent me valuable suggestions at various
stages:
M. Shahid Alam, Northeastern University Anthony Becker, St. Olaf College

Anne Alexander, University of Wyoming Robert A. Berman, American University
Samson Alva, Boston College Gary Biglaiser, University of North Carolina, Chapel Hill
Richard K. Anderson, Texas A&M University S. Brock Blomberg, Wellesley College
Niels Anthonisen, University of Western Ontario Hein Bogaard, George Washington University
Wilma Anton, University of Central Florida Vic Brajer, California State University, Fullerton
Emrah Arbak, State University of New York at Albany Jurgen Brauer, Augusta State University
Nestor M. Arguea, University of West Florida Bruce Brown, Cal Polytech Pomona and UCLA
Scott E. Atkinson, University of Georgia Byoung Heon Jun, Korea University
Talia Bar, Cornell University Cory S. Capps, University of Illinois, Urbana-Champaign
Raymond G. Batina, Washington State University John Cawley, Cornell University

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single powerful spring, fly directly upwards for eight or ten yards, and
then proceed in a straight line. Now, if you are an expert hand, is the
moment to touch your trigger, and if you delay, be sure your shot will
fall short.
As it is attached to particular feeding grounds, and returns to them
until greatly molested, you may, by secreting yourself within shooting
distance, anticipate a good result; for even although shot at, it will
reappear several times in succession in the course of a few hours,
unless it has been wounded. The gunners in the vicinity of Boston, in
Massachusetts, who kill great numbers of these birds, on account of
the high price obtained for them in the fine market of that beautiful
and hospitable city, procure them in the following manner:—They
keep live decoy-ducks of the Mallard kind, which they take with them
in their floats or boats. On arriving at a place which they know to be
suitable, they push or haul their boat into some small nook, and
conceal it among the grass or rushes. Then they place their decoys,
one in front of their ambush, the rest on either side, each having a
line attached to one of its feet, with a stone at the other end, by
which it is kept as if riding at anchor. One of the birds is retained in
the boat, where the gunner lies concealed, and in cold weather
amply covered with thick and heavy clothing. No sooner is all in
order, than the decoy-ducks, should some wild birds appear, sound
their loud call-notes, anxious as they feel to be delivered from their
sad bondage. Should this fail to produce the desired effect of
drawing the wild ducks near, the poor bird in the boat is pinched on
the rump, when it immediately calls aloud; those at anchor respond,
and the joint clamour attracts the travellers, who now check their
onward speed, wheel several times over the spot, and at last alight.
The gunner seldom waits long for a shot, and often kills fifteen or
twenty of the Black Ducks at a single discharge of his huge piece,
which is not unfrequently charged with as much as a quarter of a
pound of powder and three quarters of a pound of shot!
The Black Ducks generally appear in the sound of Long Island in
September or October, but in very cold weather proceed southward;
while those which breed in Texas, as I have been informed, remain
there all the year. At their first arrival they betake themselves to the
fresh-water ponds, and soon become fat, when they afford excellent
eating; but when the ponds are covered with ice, and they are forced
to betake themselves to estuaries or inlets of the sea, their flesh
becomes less juicy and assumes a fishy flavour. During continued
frost they collect into larger bodies than at any other time, a flock
once alighted seeming to attract others, until at last hundreds of
them meet, especially in the dawn and towards sunset. The larger
the flock however, the more difficult it is to approach it, for many
sentinels are seen on the look-out, while the rest are asleep or
feeding along the shores. Unlike the “Sea Ducks,” this species does
not ride at anchor, as it were, during its hours of repose.
My friend, the Reverend Dr John Bachman, assures me that this
bird, which some years ago was rather scarce in South Carolina, is
now becoming quite abundant in that state, where, during autumn
and winter, it resorts to the rice fields. After feeding a few weeks on
the seeds it becomes fat, juicy, and tender. He adds that the farther
inland, the more plentifully does it occur, which may be owing to the
many steamers that ply on the rivers along the sea coast, where very
few are to be seen. They are however followed in their retreats, and
shot in great numbers, so that the markets of Charleston are now
amply supplied with them. He also informs me that he has known
hybrid broods produced by a male of this species and the common
domestic duck; and that he had three of these hybrid females, the
eggs of all of which were productive. The young birds were larger
than either of their parents, but although they laid eggs in the course
of the following spring, not one of these proved impregnated. He
further states that he procured three nests of the Dusky Duck in the
State of New York.
The young of this species, in the early part of autumn, afford
delicious eating, and, in my estimation, are much superior in this
respect to the more celebrated Canvass-back Duck. That the
species should not before now have been brought into a state of
perfect domestication, only indicates our reluctance unnecessarily to
augment the comforts which have been so bountifully accorded by
Nature to the inhabitants of our happy country. In our eastern
markets the price of these birds is from a dollar to a dollar and fifty
cents the pair. They are dearer at New Orleans, but much cheaper in
the States of Ohio and Kentucky, where they are still more abundant.
Their feathers are elastic, and as valuable as those of any other
species.
I have represented a pair of these birds procured in the full
perfection of their plumage.
Anas obscura, Lath. Synops. iii. p. 545.—Ch. Bonaparte, Synopsis of Birds

of the United States, p. 384.
Dusky Duck, Anas obscura, Wils. Amer. Ornith. vol. viii. p. 141. pl. 72. fig. 5.
Dusky Duck, Nuttall, Manual, vol. ii. p. 392.
Adult Male. Plate CCCII, Fig. 1.

Bill about the length of the head, higher than broad at the base,
depressed and widened towards the end, rounded at the tip. Upper
mandible with the dorsal line sloping and a little concave, the ridge at
the base broad and flat, towards the end broadly convex, as are the
sides, the edges soft and thin, the marginal lamellæ about forty on
each side; the unguis obovate, curved, abrupt at the end. Nasal
groove elliptical, sub-basal, filled by the soft membrane of the bill;
nostrils sub-basal, placed near the ridge, longitudinal, elliptical,
pervious. Lower mandible slightly curved upwards, flattened, with the
angle very long, narrow, and rather pointed, the lamellæ about sixty.
Head of moderate size, oblong, compressed; neck rather long and
slender; body full, depressed. Feet short, stout, placed a little behind
the centre of the body; legs bare a little above the joint; tarsus short,
a little compressed, anteriorly with small scutella, externally of which
is a series continuous with those of the outer toe, laterally and
behind with reticulated angular scales. Hind toe extremely small, with
a very narrow membrane; third toe longest, fourth a little shorter, but
longer than the second; the scutella of the second and third oblique,
of the outer transverse; the three anterior toes connected by
reticulated membranes, the outer with a thick margin, the inner with
the margin extended into a slightly lobed web. Claws small, arched,
compressed, rather obtuse, that of the middle toe much larger, with a
dilated, thin edge.
Plumage dense, soft, and elastic; on the head and neck the feathers
linear-oblong, on the other parts in general broad and rounded.
Wings of moderate breadth and length, acute; primaries narrow and
tapering, the second longest, the first very little shorter; secondaries
broad, curved inwards, the inner elongated and tapering. Tail short,
much rounded, of eighteen acute feathers, none of which are
reserved.
Bill yellowish-green, the unguis dusky. Iris dark brown. Feet orange-
red, the webs dusky. The upper part of the head is glossy brownish-
black, the feathers margined with light brown; the sides of the head
and a band over the eye are light greyish-brown, with longitudinal
dusky streaks; the middle of the neck is similar, but more dusky. The
general colour is blackish-brown, a little paler beneath, all the
feathers margined with pale reddish-brown. The wing-coverts are
greyish-dusky, with a faint tinge of green; the ends of the secondary
coverts velvet-black. Primaries and their coverts blackish-brown, with
the shafts brown; secondaries darker; the speculum is green, blue,
violet, or amethyst purple, according to the light in which it is viewed,
bounded by velvet-black, the feathers also tipped with a narrow line
of white. The whole under surface of the wing, and the axillaries,
white.
Length to end of tail 24 1/2 inches, to end of claws 26; extent of
wings 38 1/2; bill 2 4/12 along the back; wing from flexure 11 1/2; tail
4 4/12; tarsus 1 6 1/2 /12; middle toe 2 3/12, its claw 4/12; first toe 5/12, its
claw 2/12. Weight 3 lb.
Adult Female. Plate CCCII. Fig. 2.

The female, which is somewhat smaller, resembles the male in
colour, but is more brown, and has the speculum of the same tints,
but without the white terminal line.
Length to end of tail 22 inches, to end of wings 21 1/4, to end of
claws 22; wing from flexure 10 1/2; extent of wings 34 1/4; tarsus 2,
middle toe and claw 2 1/2; hind toe and claw 5/12.
In this species, the number of feathers in the tail is eighteen,

although it has been represented as sixteen. In form and proportions
the Dusky Duck is very closely allied to the Mallard. The following
account of the digestive and respiratory organs is obtained from the
examination of an adult male.
On the upper mandible are 43 lamellæ; on the lower, 85 in the upper,
and 56 in the lower series. The tongue is 1 1/12 inch long, with the
sides parallel and furnished with a double row of filaments,
numerous small conical papillæ at the base, a median groove on the
upper surface, and a thin rounded appendage, a twelfth and a half in
length at the tip. The aperture of the glottis is 7 1/2/12 long, with very
numerous minute papillæ behind. The œsophagus 12 inches long, of
a uniform diameter of 4/12, until near the lower part of the neck,
where it enlarges to 8/12, again contracts as it enters the thorax,
ending in the proventriculus, which is 1 1/4 long, with numerous
oblong glandules, about a twelfth in length. Gizzard obliquely
elliptical, 2 1/4 inches across, 1 8/12 in length, its lateral muscles
extremely large, the left 10/12 in thickness, the right 9/12; their tendons
large and strong; the lower muscle moderately thick; the cuticular
lining firm and rugous, the grinding surfaces nearly smooth. The
intestine, which is 5 feet 7 1/2 inches long, is slender and nearly
uniform in diameter, measuring 4/12 across in the duodenal portion,
3/ in the rest of its extent; the rectum 3 1/2 inches long, dilated into
12
a globular cloaca 1 inch in length, and of nearly the same diameter.
The cæca are 6 1/4 long, 1 1/2/12 in diameter for 2 inches of their
length, enlarged to 3/12 in the rest of their extent, and terminating in
an obtuse extremity.
The trachea, moderately extended, is 10 inches long. Its lateral or
contractor muscles are strong, and it is furnished with a pair of
cleido-tracheals, and a pair of sterno-tracheals. The number of rings
is 136, besides 12 united rings forming a large inferior larynx, which
has a transversely oblong bony expansion, forming on the left side a
bulging and rounded sac. There are 28 bronchial half rings on the
right side, 26 on the left.
BARTRAMIAN SANDPIPER.
Totanus Bartramius, Temm.

PLATE CCCIII. Male and Female.
The Bartramian Sandpiper is the most truly terrestrial of its tribe with
which I am acquainted. It is even more inclined, at all seasons, to
keep away from the water, than the Kildeer Plover, which may often
be seen wading in shallow pools, or searching along the sandy or
muddy margins of the shores of the sea, or of fresh-water lakes and
streams. Although not unfrequently met with in the vicinity of such
places, it never ventures to wade into them; and yet the form and
length of its legs and feet would naturally induce a person not
acquainted with its habits to consider it as a wading bird.
The dry upland plains of those sections of Louisiana called
Opellousas and Attacapas, are amply peopled with this species in
early spring, as well as in autumn. They arrive there from the vast
prairies of Texas and Mexico, where they spend the winter, in the
beginning of March, or about the period of the first appearance of the
Martins, Hirundo purpurea, and return about the first of August. They
are equally abundant on all the western prairies on either side of the
Missouri, where, however, they arrive about a month later than in
Louisiana, whence they disperse over the United States, reaching
the middle districts early in May, and the State of Maine by the
middle of that month, or about the same period at which they are
seen in Indiana, Kentucky, and Ohio. Some proceed as far north as
the plains adjoining the Saskatchewan River, where Dr Richardson
met with this species in the month of May.
It has been supposed that the Bartramian Sandpiper never forms
large flocks, but this is not correct, for in the neighbourhood of New
Orleans, where it is called the “Papabote,” it usually arrives in great
bands in spring, and is met with on the open plains and large grassy
savannahs, where it generally remains about two weeks, though
sometimes individuals may be seen as late as the 15th of May. I
have observed the same circumstances on our western prairies, but
have thought that they were afterwards obliged to separate into
small flocks, or even into pairs, as soon as they are ready to seek
proper places for breeding in, for I have seldom found more than two
pairs with nests or young in the same field or piece of ground. On
their first arrival, they are generally thin, but on their return
southward, in the beginning of August, when they tarry in Louisiana
until the first of October, they are fat and juicy. I have observed, that
in spring, when they are poor, they are usually much less shy than in
autumn, when they are exceedingly wary and difficult of approach;
but this general observation is not without exceptions, and the
difference, I think, depends on the nature of the localities in which
they happen to be found at either period. When on newly ploughed
fields, which they are fond of frequenting, they see a person at a
greater distance than when they are searching for food among the
slender grasses of the plains. I have also thought that the size of the
flocks may depend upon similar contingencies, for this bird is by no
means fond of the society of man.
Like the Spotted Sandpiper, Totanus macularius, they not
unfrequently alight on fences, trees, and out-houses; but whether in
such situations or on the ground, they seldom settle without raising
both wings upright to their full extent, and uttering their loud and
prolonged, but pleasing notes. They run with great activity, stop
suddenly, and vibrate their body once or twice. When earnestly
followed by the sportsman, they lower their heads in the manner of
Wilson’s Plover, and the species called the Piping, and run off
rapidly, or squat, according to the urgency of the occasion. At other
times, they partially extend their wings, run a few steps as if about to
fly, and then cunningly move off sideways, and conceal themselves
among the grass, or behind a clod. You are not unfrequently
rendered aware of your being within sight of them, by unexpectedly
hearing their plaintive and mellow notes, a circumstance, however,
which I always concluded to be indicative of the wariness of their
disposition, for although you have just heard those well-known cries,
yet, on searching for the bird, you nowhere see it, for the cunning
creature has slipped away and hid itself. When wounded in the wing,
they run to a great distance, and are rarely found.
Like all experienced travellers, they appear to accommodate
themselves to circumstances as regards their food, for in Louisiana,
they feed on cantharides and other coleopterous insects; in
Massachusetts on grasshoppers, on which my friend Nuttall says,
they soon grow very fat; in the Carolinas on crickets and other
insects, as well as the seeds of the crab-grass, Digitaria sanguinaria;
and in the barrens of Kentucky they often pick the strawberries.
Those which feed much on cantharides, require to be very carefully
cleaned, otherwise persons eating them are liable to suffer severely.
Several gentlemen of New Orleans have assured me, that they have
seen persons at dinner obliged to leave the room at once, under
such circumstances, which cannot well be described here. When
flavoured with the ripe strawberries, on which they have fed, their
flesh is truly delicious.
This species performs its migrations by night as well as by day. Its
flight is rather swift and well sustained. While travelling, it generally
flies so high as to be beyond reach of the gun: but if the weather be
cloudy, or if it blow hard, it flies lower, and may easily be shot. It
generally proceeds in straggling bands, and moves along with
continuous easy beats of the wings, but sails, as it were, when about
to alight, as well as during the love season.
As long ago as 1805 and 1806, I observed this species breeding in
the meadows and green-fields of my plantation of Millgrove, near the
banks of Perkioming Creek. Since then, I have known of its rearing
broods in different parts of Pennsylvania, in the State of New York,
and in various districts to the eastward as far as the confines of
Maine; but I did not find it in Newfoundland or Labrador; and I have
reason to believe that it does not breed to the south of Maryland.
My friend, the Rev. Dr Bachman, has informed me that the
Bartramian Sandpiper makes its appearance in South Carolina about
the 15th of July, the hottest period of the year, in considerable
numbers, betakes itself at once to the high grassy lands, and there
remains about a month. He considers it to be then on its return from
the north, and states that it is very fat and affords delicious food. His
manner of shooting them is, to ride in a chair or gig over the fields
which they frequent, or along the roads in their neighbourhood, by
which means they can be approached near enough to enable the
sportsman to shoot with almost a certainty of success, as the bird
rises out of the grass. If one attempts to get near them on foot, they
rise at too great a distance, then sweep in circles over the spot, and
alight a considerable way off. They are seldom met with there in
flocks of more than four or five individuals.
I have found the eggs of this bird laid on the bare earth, in a hollow
scooped out to the depth of about an inch and a half, near the roots
of a tuft of rank grass, in the middle of a meadow, and seen some
nests of the same species formed of loosely arranged grasses, and
placed almost beneath low bushes growing on poor elevated ridges,
furnished with a scanty vegetation. I have also heard my esteemed
young friend, John Trudeau, state that he had discovered one on a
high part of the bank of the Delaware River. When disturbed while on
its nest, but unobserved, it runs thirty or forty yards, and then flies off
as if severely wounded. Should it have young, its attempts to decoy
you away are quite enough to induce you to desist from harassing it.
The eggs measure an inch and five and a half eighths, by an inch
and a quarter in their greatest breadth. In form they resemble those
of Totanus macularius, being broadly rounded at one end, and rather
pointed at the other; their surface smooth; their ground colour dull
greyish-yellow, with numerous spots of light purple and reddish-
brown. They are placed in the nest in the same manner as those of
the Spotted Sandpiper, that is, with the smaller ends together, which
is also the case with those of the Tell-tale Godwit, Wilson’s Plover,
and the Kildeer Plover. The young, which run about immediately
after exclusion, grow rapidly, and in about a month are able to use
their wings, after which, they and their parents gradually, and
according to the temperature of the season, move southward.
In Massachusetts, and to the eastward of that state, this species is
best known by the name of “Upland Plover,” and in some other
districts it is named the Field Plover. The drawing from which the
plate was engraved was taken from individuals shot near Bayou
Sara, in the State of Mississippi.
Totanus Bartramius, Ch. Bonap., Synopsis of Birds of the United States, p.

262.
Tringa Bartramia, Wils. Amer. Ornith. vol. vii. p. 63. pl. 59. fig. 2.
Bartramian Tatler, Nuttall, Manual, vol. ii. p. 169.
Totanus Bartramius, Richards. and Swains. Fauna Bor. Amer. vol. ii. p. 391.
Adult Male. Plate CCCIII. Fig. 1.

Bill a little longer than the head, slender, straight, slightly defected at
the end. Upper mandible with the dorsal line straight, the ridge
convex, the sides grooved beyond the middle, afterwards convex,
the edges inflected, the tips a little deflected, and tapering to an
obtuse point. Nostrils sub-basal, lateral, linear, pervious, nearer the
edge than the dorsal line. Lower mandible, with the angle very
narrow and elongated, beyond it the outline slightly convex, the sides
sloping outwards and concave until the middle, afterwards flattened,
the edges sharp, the point very narrow.
Head rather small, convex above, compressed. Neck of moderate
length, slender. Body rather slender. Feet long and slender; tibia
bare for about half its length, scutellate before and behind; tarsus
long, slender, having before and behind numerous scutella, the
narrow lateral spaces with very small oblong scales. Toes slender,
the first very short, the second much shorter than the fourth, the third
and fourth connected at the base by a web; the scutella numerous;
claws small, compressed, slightly arched, rather blunt.
Plumage soft, on the neck and lower parts, blended; on the upper
rather distinct. Wings rather long, acute, narrow; primaries tapering,
and rounded, the first longest, the second a little shorter, the rest
rapidly graduated; secondaries obliquely rounded, the inner
elongated and tapering. Tail of moderate length, much rounded, of
twelve rather narrow feathers.
Bill yellowish-green, the tip dusky, the edges towards the base
yellow. Iris dark hazel. Legs and tarsi light yellowish-grey, toes rather
darker, claws brownish-black. Upper part of the head dark brown,
with a median pale yellowish-brown line, the margins of the feathers
also of that colour, which prevails along the sides of the head and
the back of the neck, which are streaked with dusky; the eye
surrounded with yellowish-white. Throat yellowish white, without
spots; fore-part and sides of the neck, with a portion of the breast
and sides of the body, cream-coloured, with dusky lines, which
gradually become arrow-shaped on the breast, forming a double
transverse band; the feathers on the sides barred; the rest of the
lower parts yellowish-white, the lower tail-coverts rich cream-
coloured. Axillar feathers and lower wing-coverts white, banded with
brownish-black. On the upper parts the feathers are dark brown,
glossed with green, with rich cream-coloured margins; the rump
darker. On the margins of the scapulars, within the pale edge, is a
series of dusky spots, which towards the end become continuous.
Alula, primary coverts, and primary quills, blackish-brown, the inner
webs crossed by white bands, until about an inch from the end, the
shaft of the first quill white, those of the rest dusky. Secondaries
greyish-brown, their outer margins pale brown, with dusky spots; the
inner darker. The two middle feathers of the tail are dark olive, tinged
with grey, transversely barred with black, the last bar arrow-shaped,
the margins light cream-colour: the next feather on each side lighter,
and tinged with yellowish-red; the rest gradually lighter, the outer
white, all barred with black.
Length to end of tail 12 1/2 inches, to end of wings 11 1/8, to end of
claws 13 1/2; extent of wings 22; wing from flexure 7; tail 3 3/4; bare
part of tibia 9/10; tarsus 1 1 1/2/12, first toe 4/12, its claw 1 1/2/12; middle-
toe 1, its claw 2 1/4/12; bill along the ridge 1 2/12; along the edge of
lower mandible 1 3/12. Weight 6 oz.
Female. Plate CCCIII. Fig. 2.
The female is a little larger, and weighs 7 oz., but resembles the
male in colour. The individual of which the weight is here given was
very fat, but I have never met with any that weighed three-fourths of
a pound, as described by Wilson!
Length to end of tail 13 inches, to end of claws 14, extent of wings
22 3/4.
In an adult bird of this species, the tongue measures seven-twelfths

of an inch in length, and is sagittate at the base, with conical papillæ,
of which the outermost is much larger, then contracted, being deeper
than broad, and tapering to a very acute compressed point. Aperture
of the glottis 2/12 long, with numerous papillæ behind, the middle two
largest. The œsophagus is 5 1/4 inches long, of uniform diameter,
measuring about 3/12 across, and passing along the right side of the
neck, along with the trachea. Proventriculus oblong, 8/12 in diameter,
its glandules extremely numerous, oblong, half a twelfth in length.
The stomach is a strong gizzard of an oblong form; an inch and a
twelfth long, nine-twelfths in breadth, its lateral muscles of moderate
thickness, the right 2 1/2/12, the left 5 1/2/12, the central tendons oblong,
5/ in diameter. The cuticular lining is tough, of moderate thickness,
12
longitudinally rugous, the grinding plates scarcely thicker than the
rest. The intestine is 18 inches long, its diameter generally 3 1/2/12.
The rectum 2 1/4 inches long; the cæca 2 2/12, very slender, their
greatest diameter being only 1 1/2/12; the cloaca globular, about 1/2
inch in diameter. The stomach was filled with remains of
grasshoppers, of a deep red colour, with which the inner coat was
tinged, together with the head of a Libellula. No gravel or other hard
substances.
The trachea moderately extended is 3 10/12 inches long, its
1/ 1/
transverse diameter 2 2/12, diminishing to 1 /12. The rings are
2
unossified and extremely thin, 105 in number; the contractor or

lateral muscles feeble; the inferior larynx simple, with a single pair of
tracheali-bronchiales, and the usual sterno-tracheales; the bronchi of
about 15 half-rings.
This individual presented a very remarkable accumulation of fat over
the abdominal and pectoral muscles, and especially about the
furcula.
TURNSTONE.
Strepsilas Interpres, Illiger.

PLATE CCCIV. Adult in Summer and Winter.
This bird, which, in its full vernal dress, is one of the most beautiful of
its family, is found along the southern coasts of the United States
during winter, from North Carolina to the mouth of the Sabine River,
in considerable numbers, although perhaps as many travel at that
season into Texas and Mexico, where I observed it on its journey
eastward, from the beginning of April to the end of May 1837. I
procured many specimens in the course of my rambles along the
shores of the Florida Keys, and in the neighbourhood of St
Augustine, and have met with it in May and June, as well as in
September and October, in almost every part of our maritime shores,
from Maine to Maryland. On the coast of Labrador I looked for it in
vain, although Dr Richardson mentions their arrival at their
breeding quarters on the shores of Hudson’s Bay and the Arctic Sea
up to the seventy-fifth parallel.
In spring the Turnstone is rarely met with in flocks exceeding five or
six individuals, but often associates with other species, such as the
Knot, the Red-backed Sandpiper, and the Tringa subarquata.
Towards the end of autumn, however, they collect into large flocks,
and so continue during the winter. I have never seen it on the
margins of rivers or lakes, but always on the shores of the sea,
although it prefers those of the extensive inlets so numerous on our
coasts. At times it rambles to considerable distances from the beach,
for I have found it on rocky islands thirty miles from the mainland;
and on two occasions, whilst crossing the Atlantic, I saw several
flocks near the Great Banks flying swiftly, and rather close to the
water around the ships, after which they shot off toward the south-
west, and in a few minutes were out of sight. It seems to be a hardy
bird, for some of them remain in our Eastern Districts until severe
frost prevails. Having seen some, in the beginning of June, and in
superb plumage, on the high grounds of the Island of Grand
Mannan, in the Bay of Fundy, I supposed that they bred there,
although none of my party succeeded in discovering their nests.
Indeed the young, as I have been informed, are obtained there, and
along the coast of Maine, in the latter part of July.
I have found this bird much more shy when in company with other
species than when in flocks by itself, when it appears to suspect no
danger from man. Many instances of this seeming inattention have
occurred to me, among others the following:—When I was on the
island of Galveston in Texas, my friend Edward Harris, my son,
and some others of our party, had shot four deer, which the sailors
had brought to our little camp near the shore. Feeling myself rather
fatigued, I did not return to the bushes with the rest, who went in
search of more venison for our numerous crew, but proposed, with
the assistance of one of the sailors, to skin the deer. After each
animal was stripped of its hide, and deprived of its head and feet,
which were thrown away, the sailor and I took it to the water and
washed it. To my surprise, I observed four Turnstones directly in our
way to the water. They merely ran to a little distance out of our
course, and on our returning, came back immediately to the same
place; this they did four different times, and, after we were done,
they remained busily engaged in searching for food. None of them
was more than fifteen or twenty yards distant, and I was delighted to
see the ingenuity with which they turned over the oyster-shells, clods
of mud, and other small bodies left exposed by the retiring tide.
Whenever the object was not too large, the bird bent its legs to half
their length, placed its bill beneath it, and with a sudden quick jerk of
the head pushed it off, when it quickly picked up the food which was
thus exposed to view, and walked deliberately to the next shell to
perform the same operation. In several instances, when the clusters
of oyster-shells or clods of mud were too heavy to be removed in the
ordinary way, they would use not only the bill and head, but also the
breast, pushing the object with all their strength, and reminding me
of the labour which I have undergone in turning over a large turtle.
Among the sea-weeds that had been cast on the shore, they used
only the bill, tossing the garbage from side to side, with a dexterity
extremely pleasant to behold. In this manner, I saw these four
Turnstones examine almost every part of the shore along a space of
from thirty to forty yards; after which I drove them away, that our
hunters might not kill them on their return.
On another occasion, when in company with Mr Harris, and on the
same island I witnessed the same pleasing proceeding, several
Turnstones being engaged in searching for food in precisely the
same manner. At other times, and especially when in the
neighbourhood of St Augustine, in East Florida, I used to amuse
myself with watching these birds on the racoon-oyster banks, using
my glass for the purpose. I observed that they would search for such
oysters as had been killed by the heat of the sun, and pick out their
flesh precisely in the manner of our Common Oyster-catcher,
Hæmatopus palliatus, while they would strike at such small bivalves
as had thin shells, and break them, as I afterwards ascertained, by
walking to the spot. While on the Florida coast, near Cape Sable, I
shot one in the month of May, that had its stomach filled with those
beautiful shells, which, on account of their resemblance to grains of
rice, are commonly named rice-shells.
I have always looked upon the Turnstone, while at its avocations, as
a species very nearly allied to the Oyster-catcher; and, although it
certainly differs in some particulars, were I to place it in a position
determined by its affinities, I should remove it at once from the
Tringa family. Its mode of searching for food around pebbles and
other objects, the comparative strength of its legs, its retiring
disposition, and its loud whistling notes while on wing, will, I think,
prove at some period that what I have ventured to advance may be
in accordance with the only true system, by which I mean Nature’s
own system, could one be so fortunate as to understand it.
While this species remains in the United States, although its
residence is protracted to many months, very few individuals are met
with in as complete plumage as the one represented in my plate with
the wings fully extended; for out of a vast number of specimens
procured from the beginning of March to the end of May, or from
August to May, I have scarcely found two to correspond precisely in
their markings. For this reason, no doubt exists in my mind that this
species, as well as the Knot and several others, loses its rich
summer plumage soon after the breeding season, when the oldest
become scarcely distinguishable from the young. In the spring
months, however, I have observed that they gradually improve in
beauty, and acquire full-coloured feathers in patches on the upper
and lower surfaces of the body, in the same manner as the Knot, the
Red-breasted Snipe, the Godwits, and several other species.
According to Mr Hewitson, the eggs are four in number, rather
suddenly pointed towards the smaller end, generally an inch and four
and a half eighths in length, an inch and one and a half eighths in
their greatest breadth, their ground colour pale yellowish-green,
marked with irregular patches and streaks of brownish-red, and a
few lines of black.
My drawing of the Turnstones represented in the plate was made at
Philadelphia, in the end of May 1824; and the beautiful specimen
exhibited in the act of flying, I procured near Camden, while in the
agreeable company of my talented friend Le Sueur, who, alas! is
now no more.
I have not observed any remarkable difference in the plumage of the
sexes at any season of the year. The males I have generally found to
be somewhat larger than the females, which, as is well known, is not
the case in the Tringa family.
My worthy friend, Dr Bachman, once had a bird of this species alive.
It had recovered from a slight wound in the wing, when he presented
it to a lady, a friend of his and mine, who, fed it on boiled rice, and
bread soaked in milk, of both of which it was very fond. It continued
in a state of captivity upwards of a year, but was at last killed by
accident. It had become perfectly gentle, would eat from the hand of
its kind mistress, frequently bathed in a basin placed near it for the
purpose, and never attempted to escape, although left quite at liberty
to do so.
Tringa interpres, Linn. Syst. Nat. vol i. p. 248.—Lath. Ind. Orn. vol. ii. p.
738.
Tringa morinella, Linn. Syst. Nat. vol. i. p. 249.
Turnstone, Tringa interpres, Wils. Amer. Ornith. vol. vii. p. 32. pl. 57. fig 1.
Strepsilas collaris, Temm. Man. d’Ornith, part ii. p. 553.
Strepsilas Interpres, Ch. Bonap. Synopsis of Birds of the United States,
299.
Turnstone or Sea-dotterel, Nuttall, Manual, vol. ii. p. 30.
Adult Male in Summer. Plate CCCIV. Fig. 1.

Bill a little shorter than the head, rather stout, compressed, tapering,
straightish, being recurvate in a slight degree. Upper mandible with
the dorsal line very slightly concave, the nasal groove extending to
the middle, the sides beyond it sloping, the tip depressed and
blunted. Nostrils sub-basal linear-oblong, pervious. Lower mandible
with the angle short, the dorsal line ascending and slightly convex,
the sides convex, the edges sharp, the tip depressed and blunted.
Head small, ovate; eyes of moderate size. Neck of ordinary length.
Body rather full. Feet of moderate length, stout; tibia bare at the
lower part, and covered with reticulated scales; tarsus roundish, with
numerous broad anterior scutella; toes four, the first very small, and
placed higher than the rest; the anterior toes free to the base,
distinctly margined on both edges, the inner toe a little shorter than
the outer, the third or middle toe considerably longer; claws rather
small, arcuate, compressed, blunted.
Plumage full, soft, rather dense, and glossy; feathers on the hind
neck blended, and rather narrow, on the other parts ovate. Wings
long, pointed, of moderate breadth: primaries with strong shafts,
rather broad, narrowed towards the end, the first longest, the rest
rapidly decreasing; outer secondaries incurved, obliquely rounded;
inner elongated, one of them extending to half an inch of the tip of
the longest primary, when the wing is closed. Tail rather short,
slightly rounded, of twelve moderately broad, rounded feathers.
Bill black. Iris hazel. Feet deep orange red, claws black. Plumage
variegated with white, black, brown, and red. Upper parts of the head
and nape streaked with black and reddish-white; a broad band of
white crosses the forehead, passes over the eyes, and down the
sides of the neck, the hind-part of which is reddish-white faintly
mottled with dusky; a frontal band of black curves downwards before
the eye, enclosing a white patch on the lore, and meeting another
black band glossed with blue, which proceeds down the neck, from
the base of the lower mandible, enlarging behind the ear, covering
the whole anterior part of the neck, and passing along the shoulder
over the scapulars; the throat, hind part of the back, the outer
scapulars, upper tail-coverts, and the under parts of the body and
wings, white. Anterior smaller wing-coverts dusky, the rest bright

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Full Download Ebook Ebook PDF Microeconomics 8th Edition by Jeffrey M Perloff PDF

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(eBook PDF) Microeconomics 8th

Edition by Jeffrey M. Perloff

ISBN 10: 0-13-451953-1

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Solved Problem 3.5 63 Chapter 5 Applying Consumer Theory 109

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6.2 Production 151 7.3 Long-Run Costs 194

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APPLICATION The Size of Ethanol Processing Solved Problem 9.7 292

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Solved Problem 11.2 352 APPLICATION Google Uses Bidding for

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13.4 Stackelberg Oligopoly 446 Reciprocity 497

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Price of a Scarce Exhaustible Resource 547 18.2 The Inefficiency of Competition

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APPLICATION Reducing Consumers’ Chapter Appendixes A-1

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How This Book Differs from Others

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Industrial Organization How do firms differentiate their products to increase their

Behavioral Economics Should a firm allow workers to opt in or opt out of a

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End-of-Chapter Questions Starting with Chapter 2, each chapter ends with an

What’s New in the Eighth Edition

Challenges, Solved Problems, and Questions

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New and Revised Material in Chapters

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A New Feature: Common Confusions

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M. Shahid Alam, Northeastern University Anthony Becker, St. Olaf College

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Anas obscura, Lath. Synops. iii. p. 545.—Ch. Bonaparte, Synopsis of Birds

Adult Male. Plate CCCII, Fig. 1.

Adult Female. Plate CCCII. Fig. 2.

In this species, the number of feathers in the tail is eighteen,

Totanus Bartramius, Temm.

Totanus Bartramius, Ch. Bonap., Synopsis of Birds of the United States, p.

Adult Male. Plate CCCIII. Fig. 1.

In an adult bird of this species, the tongue measures seven-twelfths

unossified and extremely thin, 105 in number; the contractor or

Strepsilas Interpres, Illiger.

Adult Male in Summer. Plate CCCIV. Fig. 1.

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