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| Introduction to Economic Decision Making | |
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| Seven Examples Of Managerial Decisions | |
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| Six Steps To Decision Making | |
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| Define the Problem | |
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| Determine the Objective | |
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| Explore the Alternatives | |
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| Predict the Consequences | |
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| Make a Choice | |
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| Perform Sensitivity Analysis | |
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| Private And Public Decisions: An Economic View | |
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| Things To Come | |
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| The Aim of This Book | |
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| Decisions Within Firms | |
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| Optimal Decisions Using Marginal Analysis | |
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| Siting a Shopping Mall | |
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| A Simple Model Of The Firm | |
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| A Microchip Manufacturer | |
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| Marginal Analysis | |
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| Marginal Analysis and Calculus | |
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| Marginal Revenue And Marginal Cost | |
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| Marginal Revenue | |
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| Marginal Cost | |
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| Profit Maximization Revisited | |
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| Sensitivity Analysis | |
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| Asking What if | |
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| Appendix To Chapter 2: Calculus And Optimization Techniques | |
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| Special Appendix To Chapter 2: Optimization Using Spreadsheets | |
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| Demand Analysis And Optimal Pricing | |
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| Determinants Of Demand | |
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| The Demand Function | |
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| The Demand Curve and Shifting Demand | |
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| General Determinants of Demand | |
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| Elasticity Of Demand | |
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| Price Elasticity | |
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| Other Elasticities | |
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| Price Elasticity and Prediction | |
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| Demand Analysis And Optimal Pricing | |
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| Price Elasticity, Revenue, and Marginal Revenue | |
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| Maximizing Revenue | |
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| Optimal Markup Pricing | |
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| Price Discrimination | |
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| Information Goods | |
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| Appendix To Chapter 3: Consumer Preferences And Demand | |
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| Estimating and Forecasting Demand | |
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| Collecting Data | |
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| Consumer Surveys | |
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| Controlled Market Studies | |
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| Uncontrolled Market Data | |
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| Regression Analysis | |
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| Ordinary Least-Squares Regression | |
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| Interpreting Regression Statistics | |
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| Potential Problems in Regression | |
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| Choosing a Regression Equation | |
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| Forecasting | |
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| Time-Series Models | |
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| Fitting a Simple Trend | |
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| Barometric Models | |
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| Forecasting Performance | |
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| Final Thoughts | |
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| Appendix To Chapter 4: Regression Using Spreadsheets | |
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| Special Appendix To Chapter 4: Statistical Tables | |
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| Production | |
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| Basic Production Concepts | |
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| Production Technology | |
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| Production With One Variable Input | |
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| Short-Run and Long-Run Production | |
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| Optimal Use of an Input | |
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| Production In The Long Run | |
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| Returns to Scale | |
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| Least-Cost Production | |
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| Measuring Production Functions | |
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| Linear Production | |
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| Production with Fixed Proportions | |
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| Polynomial Functions | |
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| The Cobb-Douglas Function | |
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| Estimating Production Functions | |
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| Other Production Decisions | |
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| Multiple Plants | |
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| Multiple Products | |
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| Cost Analysis | |
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| Relevant Costs | |
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| Opportunity Costs and Economic Profits | |
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| Fixed and Sunk Costs | |
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| Profit Maximization with Limited Capacity: Ordering a Best Seller | |
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| The Cost Of Production | |
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| Short-Run Costs | |
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| Long-Run Costs | |
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| Returns To Scale And Scope | |
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| Returns to Scale | |
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| Economies of Scope | |
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| Cost Analysis And Optimal Decisions | |
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| A Single Product | |
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| The Shut-Down Rule | |
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| Multiple Products | |
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| Appendix To Chapter 6: Transfer Pricing | |
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| Special Appendix To Chapter 6: Short-Run And Long-Run Costs | |
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| Competing Within Markets | |
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| Perfect Competition | |
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| The Basics Of Supply And Demand | |
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| Competitive Equilibrium | |
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| Decisions of the Competitive Firm | |
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| Market Equilibrium | |
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| Market Efficiency | |
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| Private Markets: Benefits and Costs | |
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| International Trade | |
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| Monopoly | |
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| Pure Monopoly | |
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| Barriers to Entry | |
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| Perfect Competition Versus Pure Monopoly | |
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| Cartels | |
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| Natural Monopolies | |
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| Monopolistic Competition | |
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| Oligopoly | |
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| Oligopoly | |
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| Industry Concentration | |
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| Concentration And Prices | |
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| Quantity Competition | |
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| A Dominant Firm | |
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| Competition Among Symmetric Firms | |
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| Price Competition | |
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| Price Rigidity And Kinked Demand | |
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| Price Wars And The Prisoner's Dilemma | |
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| Other Dimensions Of Competition | |
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| Advertising | |
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| Strategic Commitments | |
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| Appendix To Chapter 9: Tying And Bundling | |
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| Game Theory And Competitive Strategy | |
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| Sizing Up Competitive Situations | |
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| Analyzing Payoff Tables | |
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| Equilibrium Strategies | |
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| Competitive Strategy | |
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| Market Entry | |
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| Bargaining | |
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| Sequential Competition | |
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| Repeated Competition | |
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| Appendix To Chapter 10: Mixed Strategies | |
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| Regulation, Public Goods, And Benefit-Cost Analysis | |
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| Market Failures And Regulation | |
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| Market Failure Due To Monopoly | |
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| Government Responses | |
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| Market Failure Due To Externalities | |
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| Remedying Externalities | |
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| Subsidizing Positive Externalities | |
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| Market Failure Due To Imperfect Information | |
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| Benefit-Cost Analysis And Public Goods Provision | |
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| Public Goods | |
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| Public Goods And Efficiency | |
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| The Basics Of Benefit-Cost Analysis | |
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| Applying The Net Benefit Rule | |
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| Dollar Values | |
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| Efficiency Versus Equity | |
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| Evaluating A Public Project | |
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| Public Investment In A Bridge | |
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| Valuing Benefits And Costs | |
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| Market Values | |
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| Nonmarketed Benefits And Costs | |
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| Decision-Making Applications | |
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| Decision Making Under Uncertainty | |
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| Uncertainty, Probability, And Expected Value | |
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| Expected Value | |
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| Decision Trees | |
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| An Oil Drilling Problem | |
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| Features Of The Expected-Value Criterion | |
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| Sequential Decisions | |
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| Risk Aversion | |
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| Expected Utility | |
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| Expected Utility And Risk Aversion | |
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| The Value Of Information | |
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| The Value Of Information | |
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| The Oil Wildcatter Revisited | |
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| Imperfect Information | |
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| Revising Probabilities | |
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| Bayes Theorem | |
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| Other Applications | |
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| Predicting Credit Risks | |
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| Intuitive Prediction | |
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| Business Behavior And Decision Pitfalls | |
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| Optimal Search | |
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| Optimal Stopping | |
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| Optimal Sequential Decisions | |
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| The Value Of Additional Alternatives | |
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| Simultaneous Search | |
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| Asymmetric Information And Organizational Design | |
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| Asymetric Information | |
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| Adverse Selection | |
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| Signalling | |
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| Principals, Agents, And Moral Hazard | |
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| Organizational Design | |
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| The Nature Of The Firm | |
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| The Breadth Of The Firm | |
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| Assigning Decision-Making Responsibilities | |
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| Monitoring And Rewarding Performance | |
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| Separation Of Ownership And Control In The Modern Corporation | |
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| Appendix To Chapter 14: A Principal-Agent Model | |
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| Bargaining And Negotiation | |
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| The Economic Sources Of Beneficial Agreements | |
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| Resolving Disputes | |
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| Differences In Values | |
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| Contingent Contracts | |
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| Multiple-Issue Negotiations | |
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| Continuous Variablee | |
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| Negotiation Strategy | |
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| Perfect Information | |
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| Imperfect Information | |
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| Actions And Competitive Bidding | |
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| The Advantages Of Auctions | |
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| Bidder Strategies | |
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| English And Dutch Auctions | |
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| Sealed-Bid Auctions | |
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| Common Values And The Winner's Curse | |
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| Optimal Auctions | |
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| Expected Auction Revenue | |
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| Competitive Procurement | |
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| Linear Programming | |
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| Linear Programs | |
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| Graphing The LP Problem | |
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| A Minimization Problem | |
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| Sensitivity Analysis And Shadow Prices | |
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| Changes In The Objective Function | |
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| Shadow Prices | |
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| Formulation And Computer Solution | |
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| For Larger LP Problems | |
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| Computer Solutions | |
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| Answers To Odd-Numbered Questions | |