9781118041581

Multiple-issue negotiations (continued)

quantity-price contract and,

646–648

wooing David Letterman, 642–645

Multiple market profits, 69–70

Multiple plants, production decisions

and, 211–212

Multiple products, 212–214, 259–261

Multiple regression, 139–140, 184–186

Multivariate function maximization,

68–69

Murphy, Kevin, 614

Mutual interest, competitive

situations and, 400–401

Myopic viewpoints, 517

N

Nalebuff, Barry, 352

Nash, John, 364

Nash equilibrium, 364, 405–408

Natural monopolies, 249, 332–336

NBC, 5–6, 453, 642–645

Negotiations. See alsoBargaining and

negotiations

failed agreements and, 653–654

imperfect information and,

650–652

multiple-issue, 640–648

perfect information and, 649–650

repetition and reputation and,

652–656

strategy and, 648–656

tender offer and, 651–652

Texaco vs.Pennzoil lawsuit,

654–656

Net benefit rule, 474

Netflix, 413

Network externalities, 104–105

New Coke, 131

New York blackout, 515–517

New York City’s taxicabs, 319,

339–340

Nokia, 414, 452

Non-zero-sum games, 400–401,

442–443

Noncooperative competitive

situations, 401

Nonmarketed benefits and costs,

480–483

Normal good, 82

Northwest Airlines, 452

Nuclear power plant construction, 232

Null hypothesis, 144

O

Objective determination, decision

making and, 7–8

Objective function, 710, 719–721

Office Depot, 451

Oil drilling decisions, 503–506,

522–530, 542–544

Oil exploration risks, 4–5

Oligopoly

advertising and, 378–381

Bertrand price competition and,

373–374

bundling and tying and, 392–396

concentration and prices and,

358–360

concentration ratios and, 353–355

dominant firm and, 361–363

dueling suppliers and, 363–366

duopoly equilibrium and, 365–366

five-forces framework and, 351–353

global airfares and, 359–360

Herfindahl-Hirschman Index

and, 357

industry concentration and,

353–358

infant formula industry and,

349–350, 381–382

informational advertising and, 380

loose oligopoly, 356

mixed bundling, 394–395

price competition and, 366–375

price cutting and, 374–375

price rigidity and kinked demand,

366–368

price wars and, 368–370

prisoner’s dilemma and, 370–372

product differentiation and,

379–380

quantity competition and, 360–366

relevant market and, 356

strategic commitments and,

376–378

strategic complements and, 376

strategic substitutes and, 376

symmetric firms and, 363–366

tight oligopoly, 356–357

Olympic Games bidding, 668–669

Omitted variables, 147

One-shot competition, 401–402

Open-source research, 18

Opportunity costs

economic profits and, 227–231

starting a business and, 229–231

Optimal advertising, 378–379

Optimal auctions, 687–694

bidder risk aversion and, 690

common-value setting and, 689–690

expected auction revenue and,

687–688

reserve prices and, 690–691

revenue equivalence theorem

and, 688

uniform example and, 688–689

value asymmetry and, 690

Optimal computer mix, linear

programming and, 709–711

Optimal consumption, consumer

preferences and demand,

123–126

Optimal decisions

cost analysis and, 255–261

shadow prices and, 723–725

Optimal markup pricing, 95–98

Optimal output, 255–257

Optimal pricing, demand analysis

and, 91–107

Optimal reaction function, 364

Optimal search, 559–563

Optimal sequential decisions,

562–563

Optimal stopping, 559–561

Optimal use of an input, 196–198

Optimistic beliefs, holding, 517–518

Optimization techniques

constrained optimization and,

69–71

marginal analysis and, 63–68

maximizing multivariable

functions, 68–69

maximizing profit and, 62–63

using spreadsheets, 73–76

Oracle, 252, 305, 452, 596

Ordinary least-squares regression,

133–140

Organization of Oil Exporting

Countries (OPEC), 329–331

758 Index

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