Term
|
Definition
| a strategy that results in the highest payoff to a player regardless of the opponent's action |
|
|
Term
|
Definition
| a representation of a game that summarize the players, the information available to them, the strategies available to them, the sequence of moves, and the payoffs resulting from alternative strategies. |
|
|
Term
|
Definition
| repeated over time and analyzes a situation where players perpetually interact. |
|
|
Term
|
Definition
simultaneous-move-game- game in which each player makes a decision without knowledge of the other players' decision.
sequential-move game- game in which one player makes a move after observing the other player's move
normal-form game- a repensentation of a game indicating the players, their possible strategies, and the payoffs resulting from alternative strategies. |
|
|
Term
|
Definition
| two players bargain over some object of value |
|
|
Term
|
Definition
| a condition describing a set of strategies in which no players can improve their payoff by unilaterally changing their own strategy, giving the other players' strategies. |
|
|
Term
|
Definition
| the players have only one chance to reach an agreement, and the offers made in bargaining are made simultaneously. |
|
|
Term
| subgame perfect equilibrium |
|
Definition
| a representation of a game that summarized the players, the information available to them at each stage, the strategies available to them, the sequence of moves, and the payoffs resulting from alternative strategies |
|
|
Term
|
Definition
| one firm can gain only at the expense of the other firm. it is a game of coordination rather than a game of conflicting interests. |
|
|
Term
|
Definition
a situation where individuals have hidden characteristics.
a selection process results in a pool of individuals with economically undesirable characteristics |
|
|
Term
|
Definition
| auction environment in which bidders do not know their own valuation of the item or the valuations of others. |
|
|
Term
|
Definition
| a situation that exists when some people have better information than others |
|
|
Term
|
Definition
| by investing in multiple projects, the manager may be able to reduce risk. |
|
|
Term
|
Definition
| a descending sequential-bid auction in which the auctioneer begins with a high asking price and gradually reduces the asking price until one bidder announces a willingness to pay that price for the item. Bidder pays the last announced price. |
|
|
Term
|
Definition
| an ascending sequential-bid auction in which bidders observe the bids of others and decide whether or not to increase the bid. The auction ends when a single bidder remains; this bidder obtains the item and pays the auctioneer the amount of the bid. |
|
|
Term
| first-price, sealed bid auction |
|
Definition
| A simultaeous-move auction in which bidders simultaneously submit bids on pieces of paper. The auctioneer awards the item to the high bidder, who pays the amount bid. |
|
|
Term
|
Definition
| action taken by one party in a relationship that cannot be observed by the other party. |
|
|
Term
|
Definition
| Things one party to a transaction knows about itself but which are unknown by the other party. |
|
|
Term
| independent private values |
|
Definition
| auction environment in which each bidder knows his own valuation of the item but does not know other bidders' valuations, and in which each bidder's valuation does not depend on other bidders' valuations of the object. |
|
|
Term
|
Definition
| the sum of the probabilities that different outcomes will occur multiplied by the resulting payoffs. |
|
|
Term
|
Definition
| Situation where one party to a contract takes a hiddent action that benefits him or her at the expense of another party. |
|
|
Term
|
Definition
| a situation where all bidders in an auction knows for certain what the item is worth and furthermore all players know the valuations of other players in an auction. |
|
|
Term
|
Definition
| The price at which a consumer is indifferent between purchaseing at the price and searching for a lower price. |
|
|
Term
|
Definition
| the presence of uncertainty |
|
|
Term
|
Definition
| preferring asure amount of $M to a risky prospect with an expected value of $M. |
|
|
Term
|
Definition
| Preferring a risky prospect with an expected value of $M to a sure amount of $M. |
|
|
Term
|
Definition
| Indifferent between a risky prospect with an expected value of $M and a sure amount of $M. |
|
|
Term
|
Definition
| An attempt by an uninformed party to sort individuals according to their characteristics. |
|
|
Term
| second price, sealed bid auction |
|
Definition
| A simultaneous-move auction in which bidders simultaneously submit bids. The auctioneer awards the item to the high bidder who pays the amount bid by the second-highest bidder. |
|
|
Term
|
Definition
| An attempt by an informed party to send an observable indicator of his or her hidden characteristics to an uninformed party. |
|
|
Term
|
Definition
| the square root of the variance. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| The sum of the probablilities that different outcomes will occur multiplied by the squared deviations from the mean of the random variable. |
|
|
Term
|
Definition
| The "bad news" conveyed to the winner that his or her estimate of the item;s value exceeds the estimates of all other bidders. |
|
|
Term
| consumer search and price uncertainty |
|
Definition
|
|
Term
| optimal bidding strategies for 4 main types of auction |
|
Definition
|
|
Term
|
Definition
| permits a firm to earn a higher payoff by committing to a decision before its rivals get a chance to commit to their decisions. |
|
|
Term
|
Definition
| earn higher profits by committing to produce at least QL instead of maintaining the flexibility to adjust output as it sees fit should entry occur. |
|
|
Term
|
Definition
| as the size of a network grows it may eventually read a point where the existing infrastructure cannot handle additional users. |
|
|
Term
|
Definition
| When a firm enjoys lower costs due to knowledge gained from its past production decisions. |
|
|
Term
|
Definition
| preentry price must be linked to the postentry profits of potential entrants |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Charging a low price initially to penetrate a market and gain a critical mass of customers; useful when strong netowrk effects are present |
|
|
Term
|
Definition
| Strategy where a firm temporarily prices below its marginal cost to drive competitors out of the market. |
|
|
Term
|
Definition
| Tactic used by a vertially inegrated firm to squeeze the margins of its competitors. |
|
|
Term
| price discrimination as a strategic tool |
|
Definition
| Is the practice of charging different customers different prices for the same product. |
|
|
Term
|
Definition
| Strategy in which a firm gains an advantage over competitors by increasing their costs. |
|
|
Term
|
Definition
| Provide a link between the preentry price charged in a market and postentry profits |
|
|
Term
|
Definition
| for the entrant's product is simply the market demand, D^M, minus the amount (Q^L), produced by the incumbent |
|
|
Term
|
Definition
| Being the second to introduce a new prodcut can yield higher payoffs than being the first if it permits the second mover to free-ride on investments made by the first mover |
|
|
Term
|
Definition
| Government policies designed to keep firms from monopolizing their markets |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
covers 189 toxic air pollutants and was the most comprehesive antipollutio act passed by ay country as of 1992.
It now covers any industry that releases over 10 tons per year of any of the listed pollutants or 25 tons per year of any combination of those pollutants. |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| herfindahl-hirschmann index |
|
Definition
|
|
Term
|
Definition
| results in inefficiencies in input usage and in firms' output |
|
|
Term
|
Definition
| when asymetric information (better information by insiders) does not destroy the market by inducing outsiders to stay out of it |
|
|
Term
|
Definition
| The ability of a firm to set its price above marginal cost. |
|
|
Term
|
Definition
| Costs borne by parties who are not involved in the production of consumption of a good. |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| A good that is onrival and nonexclusionary in consumption |
|
|
Term
|
Definition
| Selfishly motivated efforts to influence another party's decision |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| securities and exchange act |
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| emissions fees (tas incentive policy) |
|
Definition
|
|
Term
| market incentive policy (tradable permits) |
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| individual transferable quotas |
|
Definition
|
|
