9781118041581

Index 755

Expected value of information (EVI),

543–544

External enforcement of managerial

duties, 611–612

Externalities and market failure,

455–467

copyright and, 466

global warming and, 462–464

patent system and, 465–466

private payments and, 461–462

promoting positive externalities,

464–466

regulatory reform and

deregulation, 466–467

remedying, 458–464

F

F-statistic, 143–144

Facebook, 252

Failed agreements, 653–654

Fast-food franchising, 27–28, 52–53

Fat-Cat strategy, 378

FDA drug approval, 446–447

Federal Deposit Insurance

Corporation (FDIC), 592

Federal Savings and Loan Insurance

Corporation (FSLIC), 592

Federal Trade Commission Act of

1914, 450

Ferry regulation, 479

Films, bundling, 392–394

Financial crisis of 2007 and 2008,

590–592

Financial incentives, 613–615

Firm boundaries, 595–596

Firm nature, 594–595

First-degree price discrimination, 102

First-mover advantage, 415

Five-forces framework, 351–353

Fixed costs, 231–232, 239

Fixed inputs, 192

Fixed-price contracts, 694

Fixed proportions, production with,

207–208

Flexibility, innovation and, 254–255

Football, winning in, 201–202

Ford Motor Company, 254

Forecasting, 159–166

accuracy and, 164–165

barometric models and, 162–163

Cable TV subscribers and, 156–157

demand for toys, 157–160

Euro Disney and, 163–165

fitting a simple trend and, 153–156

housing bubble and crash and,

160–162

performance and, 165–166

time-series models, 151–153

Formulation issues, linear

programming and, 718

Franchising, 605–606

Fudenberg, Drew, 377–378

Full-cost pricing, 97–98

Functional lines, 597

G

Game of trust, 442–443

Game theory. See alsoCompetitive

situations

air passenger battle and, 397–398,

426–428

analyzing payoff tables and, 402–411

dominant strategy and, 404

equilibrium strategies and, 405–411

non-zero-sum games, 400–401,

442–443

sizing up competitive situations

and, 398–402

TV ratings game and, 402–405

two-tiered tender offers and,

410–411

zero-sum game, 400, 406–407

Game tree, 417

General Agreement on Tariffs and

Trade (GATT), 306

General Electric, 452, 593, 598

General Motors, 361, 395, 510, 608

Genzyme Corporation, 630–631,

656–657

GlaxoSmithKline, 15, 255

Global airfares, 359–360

Global warming, 462–464

Goodness of fit, 141

Goods necessity, price elasticity

and, 87

Google, 129, 132, 252, 305, 323, 375,

414, 452, 453, 600, 675–676, 691

Government decisions, 16–18

Government regulation.

SeeRegulation

Government spending programs,

sunk costs and, 233–234

Graphing, linear programming and,

711–714

Group performance evaluation,

607–608

Group think, 519

Groupon, 105–106

H

Harding, Tonya, 372–373

Harper & Row Company, 634

HD DVD format, 412

Health insurance, 585, 589–590

Herfindahl-Hirschman Index

(HHI), 357

Hermes, 375

Heteroscedasticity, 150

Hewlett-Packard, 411

High-definition DVDs, 411–413

HIV resource allocation, 725–726

Home lending market, 591

Hostile takeovers, 613

Housing bubble and crash, 160–162

I

IBM, 361, 450, 600

Icahn, Carl, 657

Imperfect information, 544–547

market failure and, 467–470

negotiations and, 650–652

risk assessment and, 468–470

Incentive contracts, 604–605, 694

Incentive pay, 581–582

Income elasticity, 88–89

Income proportion, price elasticity

and, 88

Increasing average cost, returns to

scale and, 249

Increasing-cost industry, 295

Increasing returns to scale, 199, 243

Independent private value

setting, 674

Independent variables, 135

Index of Leading Indicators, 163

Indifference curves, 120–123, 636

Indirect market measures, benefit-

cost analysis and, 481–482

Individual performance evaluation,

606–607

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