| Preface |
|
xix | |
| About the Authors |
|
xxiii | |
| Part I Introduction |
|
1 | (62) |
|
1 Introduction and Goals of the Firm |
|
|
2 | (26) |
|
|
|
2 | (2) |
|
Managerial Challenge: How to Achieve Sustainability: Southern Company Electric Power Generation |
|
|
2 | (2) |
|
1-1 What Is Managerial Economics? |
|
|
4 | (1) |
|
1-2 The Decision-Making Model |
|
|
5 | (3) |
|
1-2a The Responsibilities of Management |
|
|
5 | (1) |
|
What Went Right/What Went Wrong: Saturn Corporation |
|
|
6 | (1) |
|
1-2b Moral Hazard in Teams |
|
|
6 | (2) |
|
|
|
8 | (1) |
|
1-3a Risk-Bearing Theory of Profit |
|
|
8 | (1) |
|
1-3b Temporary Disequilibrium Theory of Profit |
|
|
9 | (1) |
|
1-3c Monopoly Theory of Profit |
|
|
9 | (1) |
|
1-3d Innovation Theory of Profit |
|
|
9 | (1) |
|
1-3e Managerial Efficiency Theory of Profit |
|
|
9 | (1) |
|
1-4 Objective of the Firm |
|
|
9 | (2) |
|
1-4a The Shareholder Wealth-Maximization Model of the Firm |
|
|
10 | (1) |
|
1-5 Separation of Ownership and Control: The Principal-Agent Problem |
|
|
11 | (4) |
|
1-5a Divergent Objectives and Agency Conflict |
|
|
11 | (2) |
|
|
|
13 | (2) |
|
1-6 Implications of Shareholder Wealth Maximization |
|
|
15 | (6) |
|
What Went Right/What Went Wrong: Eli Lilly Depressed by Loss of Prozac Patent |
|
|
15 | (2) |
|
1-6a Caveats to Maximizing Shareholder Value |
|
|
17 | (2) |
|
|
|
19 | (1) |
|
1-6c Goals in the Public Sector and Not-for-Profit Enterprises |
|
|
19 | (1) |
|
1-6d Not-for-Profit Objectives |
|
|
20 | (1) |
|
1-6e The Efficiency Objective in Not-for-Profit Organizations |
|
|
20 | (1) |
|
|
|
21 | (1) |
|
|
|
22 | (1) |
|
Case Exercise: Designing a Managerial Incentives Contract |
|
|
23 | (1) |
|
Case Exercise: Shareholder Value of Renewable Energy from Wind Power at Hydro Co.: Is RE < C? |
|
|
24 | (4) |
|
2 Fundamental Economic Concepts |
|
|
28 | (35) |
|
|
|
28 | (1) |
|
Managerial Challenge: Why Charge $25 per Bag on Airline Flights? |
|
|
28 | (1) |
|
2-1 Demand and Supply: A Review |
|
|
29 | (14) |
|
2-1a The Diamond-Water Paradox and the Marginal Revolution |
|
|
31 | (1) |
|
2-lb Marginal Utility and Incremental Cost Simultaneously Determine Equilibrium Market Price |
|
|
32 | (1) |
|
2-1c Individual and Market Demand Curves |
|
|
33 | (1) |
|
|
|
34 | (2) |
|
2-1e Import-Export Traded Goods |
|
|
36 | (1) |
|
International Perspectives: Exchange Rate Impacts on Demand: Cummins Engine Company |
|
|
36 | (1) |
|
2-1f Individual and Market Supply Curves |
|
|
37 | (1) |
|
2-1g Equilibrium Market Price of Gasoline |
|
|
38 | (5) |
|
|
|
43 | (5) |
|
2-2a Total, Marginal, and Average Relationships |
|
|
44 | (4) |
|
2-3 The Net Present Value Concept |
|
|
48 | (4) |
|
2-3a Determining the Net Present Value of an Investment |
|
|
48 | (2) |
|
2-3b Sources of Positive Net Present Value Projects |
|
|
50 | (1) |
|
2-3c Risk and the NPV Rule |
|
|
51 | (1) |
|
2-4 Meaning and Measurement of Risk |
|
|
52 | (5) |
|
2-4a Probability Distributions |
|
|
52 | (1) |
|
|
|
53 | (1) |
|
2-4c Standard Deviation: An Absolute Measure of Risk |
|
|
54 | (1) |
|
2-4d Normal Probability Distribution |
|
|
54 | (2) |
|
2-4e Coefficient of Variation: A Relative Measure of Risk |
|
|
56 | (10) |
|
What Went Right/What Went Wrong: Long-Term Capital Management (LTCM) |
|
|
56 | (1) |
|
2-5 Risk and Required Return |
|
|
57 | (2) |
|
|
|
59 | (1) |
|
|
|
59 | (2) |
|
Case Exercise: Revenue Management at American Airlines |
|
|
61 | (2) |
| Part II Demand And Forecasting |
|
63 | (172) |
|
|
|
64 | (37) |
|
|
|
64 | (2) |
|
Managerial Challenge: Health Care Reform and Cigarette Taxes |
|
|
64 | (2) |
|
|
|
66 | (6) |
|
3-1a The Demand Schedule Defined |
|
|
66 | (1) |
|
3-1b Constrained Utility Maximization and Consumer Behavior |
|
|
67 | (5) |
|
What Went Right/What Went Wrong: Chevy Volt |
|
|
71 | (1) |
|
3-2 The Price Elasticity of Demand |
|
|
72 | (15) |
|
3-2a Price Elasticity Defined |
|
|
73 | (3) |
|
3-2b Interpreting the Price Elasticity: The Relationship between the Price Elasticity and Sales Revenue |
|
|
76 | (6) |
|
3-2c The Importance of Elasticity-Revenue Relationships |
|
|
82 | (2) |
|
3-2d Factors Affecting the Price Elasticity of Demand |
|
|
84 | (3) |
|
International Perspectives: Free Trade and the Price Elasticity of Demand: Nestle Yogurt |
|
|
86 | (1) |
|
3-3 The Income Elasticity of Demand |
|
|
87 | (3) |
|
3-3a Income Elasticity Defined |
|
|
87 | (3) |
|
3-4 Cross Elasticity of Demand |
|
|
90 | (2) |
|
3-4a Cross Price Elasticity Defined |
|
|
90 | (1) |
|
3-4b Interpreting the Cross Price Elasticity |
|
|
90 | (1) |
|
3-4c Antitrust and Cross Price Elasticities |
|
|
90 | (2) |
|
3-4d An Empirical Illustration of Price, Income, and Cross Elasticities |
|
|
92 | (1) |
|
3-5 The Combined Effect of Demand Elasticities |
|
|
92 | (1) |
|
|
|
93 | (1) |
|
|
|
94 | (3) |
|
Case Exercise: Polo Golf Shirt Pricing |
|
|
97 | (1) |
|
Case Exercise: Fifty Years of Sales Maximization at Volkswagen |
|
|
98 | (3) |
|
|
|
101 | (40) |
|
|
|
101 | (1) |
|
Managerial Challenge: Demand for Whitman's Chocolate Samplers |
|
|
101 | (1) |
|
4-1 Statistical Estimation of the Demand Function |
|
|
102 | (3) |
|
4-1a Specification of the Model |
|
|
103 | (2) |
|
4-2 A Simple Linear Regression Model |
|
|
105 | (5) |
|
4-2a Assumptions Underlying the Simple Linear Regression Model |
|
|
106 | (1) |
|
4-2b Estimating the Population Regression Coefficients |
|
|
107 | (3) |
|
4-3 Using the Regression Equation to Make Predictions |
|
|
110 | (8) |
|
4-3a Inferences about the Population Regression Coefficients |
|
|
112 | (3) |
|
4-3b Correlation Coefficient |
|
|
115 | (1) |
|
4-3c The Analysis of Variance |
|
|
116 | (2) |
|
4-4 Multiple Linear Regression Model |
|
|
118 | (4) |
|
4-4a Use of Computer Programs |
|
|
118 | (1) |
|
4-4b Estimating the Population Regression Coefficients |
|
|
118 | (1) |
|
4-4c Using the Regression Model to Make Forecasts |
|
|
118 | (1) |
|
4-4d Inferences about the Population Regression Coefficients |
|
|
119 | (2) |
|
4-4e The Analysis of Variance |
|
|
121 | (1) |
|
|
|
122 | (1) |
|
|
|
122 | (4) |
|
Case Exercise: Soft Drink Demand Estimation |
|
|
126 | (3) |
|
4A Problems in Applying the Linear Regression Model |
|
|
129 | (9) |
|
|
|
129 | (7) |
|
|
|
129 | (2) |
|
|
|
131 | (1) |
|
4A-1c Specification and Measurement Errors |
|
|
132 | (1) |
|
|
|
133 | (1) |
|
4A-1e Simultaneous Equation Relationships and the Identification Problem |
|
|
133 | (3) |
|
4A-2 Nonlinear Regression Models |
|
|
136 | (7) |
|
4A-2a Semilogarithmic Transformation |
|
|
136 | (1) |
|
4A-2b Double-Log Transformation |
|
|
136 | (1) |
|
4A-2c Reciprocal Transformation |
|
|
137 | (1) |
|
4A-2d Polynomial Transformation |
|
|
137 | (1) |
|
|
|
138 | (1) |
|
|
|
138 | (3) |
|
5 Business and Economic Forecasting |
|
|
141 | (37) |
|
|
|
141 | (2) |
|
Managerial Challenge: Excess Fiber Optic Capacity at Global Crossing Inc |
|
|
141 | (2) |
|
5-1 The Significance of Forecasting |
|
|
143 | (1) |
|
5-2 Selecting a Forecasting Technique |
|
|
143 | (2) |
|
5-2a Hierarchy of Forecasts |
|
|
143 | (1) |
|
5-2b Criteria Used to Select a Forecasting Technique |
|
|
144 | (1) |
|
5-2c Evaluating the Accuracy of Forecasting Models |
|
|
144 | (1) |
|
What Went Right/What Went Wrong: Crocs Shoes |
|
|
144 | (1) |
|
5-3 Alternative Forecasting Techniques |
|
|
145 | (1) |
|
5-4 Deterministic Trend Analysis |
|
|
145 | (7) |
|
5-4a Components of a Time Series |
|
|
145 | (1) |
|
5-4b Some Elementary Time-Series Models |
|
|
146 | (1) |
|
|
|
147 | (3) |
|
|
|
150 | (2) |
|
|
|
152 | (6) |
|
|
|
153 | (2) |
|
5-5b First-Order Exponential Smoothing |
|
|
155 | (3) |
|
5-6 Barometric Techniques |
|
|
158 | (1) |
|
5-6a Leading, Lagging, and Coincident Indicators |
|
|
158 | (1) |
|
5-7 Survey and Opinion-Polling Techniques |
|
|
159 | (2) |
|
5-7a Forecasting Macroeconomic Activity |
|
|
160 | (1) |
|
|
|
161 | (1) |
|
5-8 Macroeconometric Models |
|
|
161 | (4) |
|
5-8a Advantages of Econometric Forecasting Techniques |
|
|
161 | (1) |
|
5-8b Single-Equation Models |
|
|
161 | (2) |
|
5-8c Multi-Equation Models |
|
|
163 | (1) |
|
5-8d Consensus Forecasts: Livingston and Blue Chip Forecaster Surveys |
|
|
164 | (1) |
|
5-9 Forecasting with Input-Output Tables |
|
|
165 | (1) |
|
International Perspectives: Long-Term Sales Forecasting by General Motors in Overseas Markets |
|
|
165 | (1) |
|
5-10 Advanced Material: Stochastic Time-series Analysis |
|
|
166 | (3) |
|
|
|
169 | (1) |
|
|
|
169 | (4) |
|
Case Exercise: Cruise Ship Arrivals in Alaska |
|
|
173 | (1) |
|
Case Exercise: Lumber Price Forecast |
|
|
174 | (1) |
|
Case Exercise: Forecasting in the Global Financial Crisis |
|
|
175 | (3) |
|
6 Managing in the Global Economy |
|
|
178 | (57) |
|
|
|
178 | (3) |
|
Managerial Challenge: The Role of the FX Rate in Assessing Foreign Business Opportunity |
|
|
178 | (3) |
|
|
|
181 | (1) |
|
What Went Right/What Went Wrong: Export Market Pricing at Toyota |
|
|
181 | (1) |
|
6-2 Import-Export Sales and Exchange Rates |
|
|
182 | (3) |
|
6-2a Foreign Exchange Risk |
|
|
183 | (4) |
|
International Perspectives: Collapse of Export and Domestic Sales at Cummins Engine |
|
|
184 | (1) |
|
|
|
185 | (2) |
|
|
|
187 | (4) |
|
|
|
189 | (2) |
|
6-5 The Market for U.S. Dollars as Foreign Exchange |
|
|
191 | (4) |
|
6-5a Import-Export Flows and Transaction Demand for a Currency |
|
|
192 | (1) |
|
6-5b The Equilibrium Price of the U.S. Dollar |
|
|
193 | (1) |
|
6-5c Speculative Demand, Government Transfers, and Coordinated Intervention |
|
|
193 | (1) |
|
6-5d Short-Term Exchange Rate Fluctuations |
|
|
194 | (1) |
|
6-6 Determinants of Long-Run Trends in Exchange Rates |
|
|
195 | (4) |
|
6-6a The Role of Real Growth Rates |
|
|
195 | (3) |
|
6-6b The Role of Real Interest Rates |
|
|
198 | (1) |
|
6-6c The Role of Expected Inflation |
|
|
198 | (1) |
|
6-7 Purchasing Power Parity |
|
|
199 | (10) |
|
6-7a PPP Offers a Better Yardstick of Comparative Size of Business Activity |
|
|
200 | (2) |
|
What Went Right/What Went Wrong: Big Box U.S. Retailers in China |
|
|
202 | (1) |
|
6-7b Relative Purchasing Power Parity |
|
|
202 | (1) |
|
6-7c Qualifications of PPP |
|
|
203 | (1) |
|
6-7d The Appropriate Use of PPP: An Overview |
|
|
204 | (2) |
|
What Went Right/What Went Wrong: GM, Toyota, and the Celica GT-S Coupe |
|
|
205 | (1) |
|
6-7e Trade-Weighted Exchange Rate Index |
|
|
206 | (3) |
|
6-8 International Trade: A Managerial Perspective |
|
|
209 | (10) |
|
6-8a Shares of World Trade and Regional Trading Blocs |
|
|
209 | (2) |
|
6-8b Comparative Advantage and Free Trade |
|
|
211 | (3) |
|
6-8c Import Controls and Protective Tariffs |
|
|
214 | (1) |
|
6-8d The Case for Strategic Trade Policy |
|
|
215 | (3) |
|
|
|
218 | (1) |
|
6-8f Network Externalities |
|
|
218 | (1) |
|
6-9 Free Trade Areas: The European Union and NAFTA |
|
|
219 | (3) |
|
6-9a Optimal Currency Areas |
|
|
219 | (1) |
|
|
|
220 | (1) |
|
|
|
220 | (1) |
|
6-9d Correlated Macroeconomic Shocks |
|
|
221 | (1) |
|
6-10 Largest U.S. Trading Partners: The Role of NAFTA |
|
|
222 | (5) |
|
6-10a A Comparison of the EU and NAFTA |
|
|
224 | (1) |
|
6-10b Gray Markets, Knockoffs, and Parallel Importing |
|
|
225 | (13) |
|
What Went Right/What Went Wrong: Ford Motor Co. and Exide Batteries: Are Country Managers Here to Stay? |
|
|
226 | (1) |
|
6-11 Perspectives on the U.S. Trade Deficit |
|
|
227 | (2) |
|
|
|
229 | (1) |
|
|
|
230 | (1) |
|
Case Exercise: Predicting the Long-Term Trends in Value of the U.S. Dollar and the Euro |
|
|
231 | (1) |
|
Case Exercise: Elaborate the Debate on NAFTA |
|
|
231 | (1) |
|
6A Foreign Exchange Risk Management |
|
|
232 | (1) |
|
International Perspectives: Toyota and Honda Buy U.S. Assembly Capacity |
|
|
233 | (2) |
| Part III Production And Cost |
|
235 | (98) |
|
|
|
236 | (46) |
|
|
|
236 | (2) |
|
Managerial Challenge: Green Power Initiatives Examined: What Went Wrong in California's Deregulation of Electricity? |
|
|
236 | (2) |
|
7-1 The Production Function |
|
|
238 | (3) |
|
7-1a Fixed and Variable Inputs |
|
|
239 | (2) |
|
7-2 Production Functions with One Variable Input |
|
|
241 | (7) |
|
7-2a Marginal and Average Product Functions |
|
|
241 | (1) |
|
7-2b The Law of Diminishing Marginal Returns |
|
|
242 | (1) |
|
What Went Right/What Went Wrong: Factory Bottlenecks at a Boeing Assembly Plant |
|
|
243 | (1) |
|
7-2c Increasing Returns with Network Effects |
|
|
243 | (2) |
|
7-2d Producing Information Services under Increasing Returns |
|
|
245 | (1) |
|
7-2e The Relationship between Total, Marginal, and Average Product |
|
|
246 | (2) |
|
7-3 Determining the Optimal Use of the Variable Input |
|
|
248 | (2) |
|
7-3a Marginal Revenue Product |
|
|
249 | (1) |
|
7-3b Marginal Factor Cost |
|
|
249 | (1) |
|
|
|
249 | (1) |
|
7-4 Production with Multiple Variable Inputs |
|
|
250 | (4) |
|
7-4a Production (Output Constant) Isoquants |
|
|
250 | (2) |
|
7-4b The Marginal Rate of Technical Substitution |
|
|
252 | (2) |
|
7-5 Determining the Optimal Combination of Inputs |
|
|
254 | (3) |
|
|
|
255 | (1) |
|
7-5b Minimizing Cost Subject to an Output Constraint |
|
|
256 | (1) |
|
7-6 A Fixed Proportions Optimal Production Process |
|
|
257 | (2) |
|
7-6a Production Processes and Process Rays |
|
|
258 | (1) |
|
7-7 Measuring the Efficiency of a Production Process |
|
|
259 | (1) |
|
|
|
260 | (6) |
|
7-8a Measuring Returns to Scale |
|
|
261 | (1) |
|
7-8b Increasing and Decreasing Returns to Scale |
|
|
262 | (1) |
|
7-8c The Cobb-Douglas Production Function |
|
|
262 | (1) |
|
7-8d Empirical Studies of the Cobb-Douglas Production Function in Manufacturing |
|
|
263 | (1) |
|
7-8e A Cross-Sectional Analysis of U.S. Manufacturing Industries |
|
|
263 | (3) |
|
|
|
266 | (1) |
|
|
|
267 | (3) |
|
Case Exercise: The Production Function for Wilson Company |
|
|
270 | (2) |
|
7A Production Economics of Renewable and Exhaustible Natural Resources, Advanced Material |
|
|
272 | (9) |
|
|
|
272 | (4) |
|
7A-2 Exhaustible Natural Resources |
|
|
276 | (5) |
|
|
|
281 | (1) |
|
|
|
282 | (25) |
|
|
|
282 | (1) |
|
Managerial Challenge: Can a Leaner General Motors Compete Effectively? |
|
|
282 | (1) |
|
8-1 The Meaning and Measurement of Cost |
|
|
283 | (5) |
|
8-1a Accounting versus Economic Costs |
|
|
284 | (1) |
|
8-1b Three Contrasts between Accounting and Economic Costs |
|
|
284 | (4) |
|
8-2 Short-Run Cost and Product Functions |
|
|
288 | (5) |
|
8-2a Average and Marginal Cost Functions |
|
|
288 | (5) |
|
8-3 Long-Run Cost Functions |
|
|
293 | (1) |
|
8-3a Optimal Capacity Utilization: Three Concepts |
|
|
293 | (1) |
|
8-4 Economies and Diseconomies of Scale |
|
|
294 | (4) |
|
8-4a The Percentage of Learning |
|
|
295 | (3) |
|
8-4b Diseconomies of Scale |
|
|
298 | (1) |
|
8-4c The Overall Effects of Scale Economies and Diseconomies |
|
|
298 | (3) |
|
International Perspectives: How Japanese Companies Deal with the Problems of Size |
|
|
299 | (2) |
|
|
|
301 | (1) |
|
|
|
302 | (2) |
|
Case Exercise: Cost Analysis of Patio Furniture |
|
|
304 | (2) |
|
Case Exercise: Profit Margins on the Amazon Kindle |
|
|
306 | (1) |
|
9 Applications of Cost Theory |
|
|
307 | (26) |
|
|
|
307 | (1) |
|
Managerial Challenge: How Exactly Have Computerization and Information Technology Lowered Costs at Chevron, Timken, and Merck? |
|
|
307 | (1) |
|
9-1 Estimating Cost Functions |
|
|
308 | (11) |
|
9-1a Issues in Cost Definition and Measurement |
|
|
309 | (1) |
|
9-1b Controlling for Other Variables |
|
|
309 | (1) |
|
9-1c The Form of the Empirical Cost-Output Relationship |
|
|
310 | (2) |
|
What Went Right/What Went Wrong: Boeing: The Rising Marginal Cost of Wide-Bodies |
|
|
311 | (1) |
|
9-1d Statistical Estimation of Short-Run Cost Functions |
|
|
312 | (1) |
|
9-1e Statistical Estimation of Long-Run Cost Functions |
|
|
313 | (1) |
|
9-1f Determining the Optimal Scale of an Operation |
|
|
313 | (3) |
|
9-1g Economies of Scale versus Economies of Scope |
|
|
316 | (1) |
|
9-1h Engineering Cost Techniques |
|
|
316 | (2) |
|
9-1i The Survivor Technique |
|
|
318 | (1) |
|
|
|
318 | (1) |
|
|
|
319 | (8) |
|
|
|
320 | (1) |
|
|
|
320 | (3) |
|
9-2c Some Limitations of Break-Even Analysis |
|
|
323 | (1) |
|
9-2d Doing a Break-Even versus a Contribution Analysis |
|
|
323 | (2) |
|
9-2e A Limitation of Contribution Analysis |
|
|
325 | (1) |
|
|
|
325 | (2) |
|
9-2g Inherent Business Risk |
|
|
327 | (1) |
|
|
|
327 | (1) |
|
|
|
328 | (1) |
|
Case Exercise: Cost Functions |
|
|
329 | (1) |
|
Case Exercise: Charter Airline Operating Decisions |
|
|
330 | (3) |
| Part IV Pricing And Output Decisions: Strategy And Tactics |
|
333 | (224) |
|
10 Prices, Output, and Strategy: Pure and Monopolistic Competition |
|
|
334 | (50) |
|
|
|
334 | (1) |
|
Managerial Challenge: Resurrecting Apple in the Tablet World |
|
|
334 | (1) |
|
|
|
335 | (1) |
|
10-2 Competitive Strategy |
|
|
336 | (5) |
|
What Went Right/What Went Wrong: Xerox |
|
|
337 | (1) |
|
10-2a Generic Types of Strategies |
|
|
338 | (1) |
|
10-2b Product Differentiation Strategy |
|
|
338 | (1) |
|
10-2c Cost-Based Strategy |
|
|
338 | (1) |
|
10-2d Information Technology Strategy |
|
|
339 | (2) |
|
10-2e The Relevant Market Concept |
|
|
341 | (1) |
|
10-3 Porter's Five Forces Strategic Framework |
|
|
341 | (10) |
|
10-3a The Threat of Substitutes |
|
|
342 | (1) |
|
10-3b The Threat of Entry |
|
|
343 | (3) |
|
10-3c The Power of Buyers and Suppliers |
|
|
346 | (1) |
|
10-3d The Intensity of Rivalrous Tactics |
|
|
347 | (4) |
|
10-3e The Myth of Market Share |
|
|
351 | (1) |
|
10-4 A Continuum of Market Structures |
|
|
351 | (4) |
|
|
|
352 | (1) |
|
|
|
353 | (1) |
|
10-4c Monopolistic Competition |
|
|
354 | (1) |
|
|
|
354 | (1) |
|
10-5 Price-Output Determination under Pure Competition |
|
|
355 | (7) |
|
|
|
355 | (3) |
|
10-5b Profit Maximization under Pure Competition (Short Run): Adobe Corporation |
|
|
358 | (1) |
|
|
|
359 | (3) |
|
10-6 Price-Output Determination under Monopolistic Competition |
|
|
362 | (3) |
|
What Went Right/What Went Wrong: The Dynamics of Competition at Amazon.com |
|
|
363 | (1) |
|
|
|
363 | (1) |
|
|
|
363 | (2) |
|
10-7 Selling and Promotional Expenses |
|
|
365 | (4) |
|
10-7a Determining the Optimal Level of Selling and Promotional Outlays |
|
|
366 | (1) |
|
10-7b Optimal Advertising Intensity |
|
|
367 | (1) |
|
10-7c The Net Value of Advertising |
|
|
368 | (1) |
|
10-8 Competitive Markets under Asymmetric Information |
|
|
369 | (4) |
|
10-8a Incomplete versus Asymmetric Information |
|
|
369 | (1) |
|
10-8b Search Goods versus Experience Goods |
|
|
370 | (1) |
|
10-8c Adverse Selection and the Notorious Firm |
|
|
370 | (2) |
|
10-8d Insuring and Lending under Asymmetric Information: Another Lemons Market |
|
|
372 | (1) |
|
10-9 Solutions to the Adverse Selection Problem: Advanced Material |
|
|
373 | (5) |
|
10-9a Mutual Reliance: Hostage Mechanisms Support Asymmetric Information Exchange |
|
|
373 | (1) |
|
10-9b Brand-Name Reputations as Hostages |
|
|
374 | (2) |
|
10-9c Price Premiums with Non-Redeployable Assets |
|
|
376 | (2) |
|
|
|
378 | (1) |
|
|
|
379 | (2) |
|
Case Exercise: Netflix and Redbox Compete for Movie Rentals |
|
|
381 | (1) |
|
Case Exercise: Saving Sony Music |
|
|
382 | (2) |
|
11 Price and Output Determination: Monopoly and Dominant Firms |
|
|
384 | (27) |
|
|
|
384 | (1) |
|
Managerial Challenge: Dominant Microprocessor Company Intel Adapts to Next Trend |
|
|
384 | (1) |
|
|
|
385 | (1) |
|
11-2 Sources of Market Power for a Monopolist |
|
|
386 | (4) |
|
11-2a Increasing Returns from Network Effects |
|
|
386 | (4) |
|
What Went Right/What Went Wrong: Pilot Error at Palm |
|
|
389 | (1) |
|
11-3 Price and Output Determination for a Monopolist |
|
|
390 | (5) |
|
11-3a Spreadsheet Approach: Profit versus Revenue Maximization for Polo Golf Shirts |
|
|
390 | (1) |
|
|
|
391 | (1) |
|
|
|
392 | (1) |
|
11-3d The Importance of the Price Elasticity of Demand |
|
|
393 | (2) |
|
11-4 The Optimal Markup, Contribution Margin, and Contribution Margin Percentage |
|
|
395 | (7) |
|
11-4a Gross Profit Margins |
|
|
397 | (1) |
|
11-4b Components of the Margin |
|
|
397 | (1) |
|
11-4c Monopolists and Capacity Investments |
|
|
398 | (1) |
|
|
|
399 | (1) |
|
11-4e Using Limit Pricing to Hamper the Sales of Generic Drugs |
|
|
400 | (2) |
|
What Went Right/What Went Wrong: Pfizer Sustains Sales of Off-Patent Lipitor |
|
|
401 | (1) |
|
11-5 Regulated Monopolies |
|
|
402 | (1) |
|
11-5a Electric Power Companies |
|
|
402 | (1) |
|
What Went Right/What Went Wrong: The Public Service Company of New Mexico |
|
|
402 | (1) |
|
11-5b Natural Gas Companies |
|
|
403 | (1) |
|
11-6 The Economic Rationale for Regulation |
|
|
403 | (2) |
|
11-6a Natural Monopoly Argument |
|
|
403 | (2) |
|
|
|
405 | (1) |
|
|
|
405 | (4) |
|
Case Exercise: Differential Pricing of Pharmaceuticals: The HIV/AIDS Crisis |
|
|
409 | (1) |
|
Case Exercise: Limit Pricing as Strategic Entry Deterrence: Ace Inhibitor |
|
|
410 | (1) |
|
12 Price and Output Determination: Oligopoly |
|
|
411 | (35) |
|
|
|
411 | (2) |
|
Managerial Challenge: Google's Android and Apple's iPhone Displace Nokia in Smart phones? |
|
|
411 | (2) |
|
12-1 Oligopolistic Market Structures |
|
|
413 | (5) |
|
12-1a Oligopoly in the United States: Relative Market Shares |
|
|
413 | (5) |
|
12-2 Interdependencies in Oligopolistic Industries |
|
|
418 | (3) |
|
|
|
420 | (1) |
|
12-3 Cartels and Other Forms of Collusion |
|
|
421 | (12) |
|
12-3a Factors Affecting the Likelihood of Successful Collusion |
|
|
423 | (1) |
|
12-3b Cartel Profit Maximization and the Allocation of Restricted Output |
|
|
424 | (7) |
|
International Perspectives: The OPEC Cartel |
|
|
426 | (5) |
|
12-3c Cartel Analysis: Algebraic Approach |
|
|
431 | (2) |
|
|
|
433 | (4) |
|
12-4a Barometric Price Leadership |
|
|
433 | (1) |
|
12-4b Dominant Firm Price Leadership |
|
|
434 | (3) |
|
12-5 The Kinked Demand Curve Model |
|
|
437 | (1) |
|
|
|
438 | (5) |
|
What Went Right/What Went Wrong: Good-Better-Best Product Strategy at Marriott Corporation and Kodak |
|
|
441 | (2) |
|
|
|
443 | (1) |
|
|
|
444 | (2) |
|
13 Best-Practice Tactics: Game Theory |
|
|
446 | (62) |
|
|
|
446 | (2) |
|
Managerial Challenge: Large-Scale Entry Deterrence of Low-Cost Discounters: Southwest Airline/AirTran |
|
|
446 | (2) |
|
13-1 Oligopolistic Rivalry and Game Theory |
|
|
448 | (5) |
|
What Went Right/What Went Wrong: Nintendo's Wii U |
|
|
448 | (1) |
|
13-1a A Conceptual Framework for Game Theory Analysis |
|
|
449 | (1) |
|
13-1b Components of a Game |
|
|
450 | (2) |
|
13-1c Cooperative and Noncooperative Games |
|
|
452 | (1) |
|
13-1d Other Types of Games |
|
|
452 | (1) |
|
13-2 Analyzing Simultaneous Games |
|
|
453 | (4) |
|
13-2a The Prisoner's Dilemma |
|
|
453 | (2) |
|
13-2b Dominant Strategy Defined |
|
|
455 | (2) |
|
13-3 Nash Equilibrium Strategy Defined |
|
|
457 | (6) |
|
13-3a Mixed Nash Equilibrium Strategy |
|
|
460 | (3) |
|
13-4 The Escape from Prisoner's Dilemma |
|
|
463 | (8) |
|
13-4a Multiperiod Punishment and Reward Schemes in Repeated Play Games |
|
|
463 | (1) |
|
13-4b Unraveling and the Chain Store Paradox |
|
|
464 | (2) |
|
13-4c Mutual Forbearance and Cooperation in Repeated Prisoner's Dilemma Games |
|
|
466 | (1) |
|
13-4d Winning Strategies in Evolutionary Computer Tournaments: Tit for Tat |
|
|
467 | (1) |
|
13-4e Bayesian Reputation Effects |
|
|
467 | (2) |
|
13-4f Price-Matching Guarantees |
|
|
469 | (2) |
|
13-5 Analyzing Sequential Games |
|
|
471 | (6) |
|
13-5a Industry Standards as Coordination Devices |
|
|
471 | (2) |
|
13-5b Importance of the Order of Play |
|
|
473 | (1) |
|
13-5c A Sequential Coordination Game |
|
|
474 | (2) |
|
13-5d Subgame Perfect Equilibrium in Sequential Games |
|
|
476 | (1) |
|
13-6 Business Rivalry as a Self-Enforcing Sequential Game |
|
|
477 | (3) |
|
13-6a First-Mover and Fast-Second Advantages |
|
|
478 | (2) |
|
13-7 Credible Threats and Commitments |
|
|
480 | (1) |
|
13-8 Mechanisms for Establishing Credibility |
|
|
481 | (2) |
|
13-9 Replacement Guarantees |
|
|
483 | (6) |
|
13-9a Hostages Support the Credibility of Commitments |
|
|
484 | (1) |
|
13-9b Credible Commitments of Durable Goods Monopolists |
|
|
485 | (1) |
|
13-9c Planned Obsolescence |
|
|
486 | (1) |
|
13-9d Post-Purchase Discounting Risk |
|
|
487 | (2) |
|
13-9e Lease Prices Reflect Anticipated Risks |
|
|
489 | (1) |
|
|
|
489 | (1) |
|
|
|
490 | (5) |
|
Case Exercise: International Perspectives: The Superjumbo Dilemma |
|
|
495 | (2) |
|
13A Entry Deterrence and Accommodation Games |
|
|
497 | (9) |
|
13A-1 Excess Capacity as a Credible Threat |
|
|
497 | (1) |
|
13A-2 Precommitments Using Non- Redeployable Assets |
|
|
497 | (3) |
|
13A-3 Customer Sorting Rules |
|
|
500 | (5) |
|
13A-3a A Role for Sunk Costs in Decision Making |
|
|
501 | (1) |
|
13A-3b Perfectly Contestable Markets |
|
|
502 | (1) |
|
13A-3c Brinkmanship and Wars of Attrition |
|
|
503 | (2) |
|
13A-4 Tactical Insights about Slippery Slopes |
|
|
505 | (1) |
|
|
|
506 | (1) |
|
|
|
507 | (1) |
|
14 Pricing Techniques and Analysis |
|
|
508 | (49) |
|
|
|
508 | (1) |
|
Managerial Challenge: Pricing the Chevy Volt |
|
|
508 | (1) |
|
14-1 A Conceptual Framework for Proactive, Systematic-Analytical, Value-Based Pricing |
|
|
509 | (4) |
|
What Went Right/What Went Wrong: Zerex Anticorrosive Antifreeze |
|
|
510 | (3) |
|
14-2 Optimal Differential Price Levels |
|
|
513 | (9) |
|
|
|
513 | (2) |
|
|
|
515 | (1) |
|
14-2c Multiple-Product Pricing Decision |
|
|
516 | (1) |
|
14-2d Differential Pricing and the Price Elasticity of Demand |
|
|
517 | (5) |
|
What Went Right/What Went Wrong: Two-Part Pricing at Disney World |
|
|
522 | (1) |
|
14-3 Differential Pricing in Target Market Segments |
|
|
522 | (11) |
|
14-3a Direct Segmentation with "Fences" |
|
|
523 | (3) |
|
14-3b Optimal Two-Part Tariffs |
|
|
526 | (1) |
|
What Went Right/What Went Wrong: Unlimited Data at Verizon Wireless |
|
|
526 | (1) |
|
|
|
527 | (1) |
|
What Went Right/What Went Wrong: Price-Sensitive Customers Redeem |
|
|
528 | (1) |
|
|
|
528 | (3) |
|
14-3e Price Discrimination |
|
|
531 | (2) |
|
|
|
533 | (7) |
|
14-4a Product Life Cycle Framework |
|
|
533 | (2) |
|
14-4b Full-Cost Pricing versus Incremental Contribution Analysis |
|
|
535 | (2) |
|
14-4c Pricing on the Internet |
|
|
537 | (3) |
|
|
|
540 | (1) |
|
|
|
541 | (2) |
|
Case Exercise: Partitoning the Price of the Chevy Volt |
|
|
543 | (2) |
|
14A The Practice of Revenue Management |
|
|
545 | (11) |
|
14A-1 A Cross-Functional Systems Management Process |
|
|
546 | (2) |
|
14A-2 Sources of Sustainable Price Premiums |
|
|
548 | (1) |
|
14A-3 Revenue Management Decisions, Advanced Material |
|
|
548 | (12) |
|
14A-3a Proactive Price Discrimination |
|
|
549 | (1) |
|
14A-3b Capacity Reallocation |
|
|
550 | (3) |
|
14A-3c Optimal Overbooking |
|
|
553 | (3) |
|
|
|
556 | (1) |
|
|
|
556 | (1) |
| Part V Organizational Architecture And Regulation |
|
557 | |
|
15 Contracting, Governance, and Organizational Form |
|
|
558 | (65) |
|
|
|
558 | (1) |
|
Managerial Challenge: Controlling the Vertical: Microsoft WebTV versus Google Fiber |
|
|
558 | (1) |
|
|
|
559 | (1) |
|
15-2 The Role of Contracting in Cooperative Games |
|
|
560 | (5) |
|
15-2a Vertical Requirements Contracts |
|
|
561 | (1) |
|
15-2b The Function of Commercial Contracts |
|
|
562 | (3) |
|
15-2c Incomplete Information, Incomplete Contracting, and Post-Contractual Opportunism |
|
|
565 | (1) |
|
15-3 Corporate Governance and the Problem of Moral Hazard |
|
|
565 | (4) |
|
What Went Right/What Went Wrong: Forecasting the Great Recession with Workouts and Rollovers |
|
|
567 | (1) |
|
15-3a The Need for Governance Mechanisms |
|
|
568 | (1) |
|
What Went Right/What Went Wrong: Moral Hazard and Holdup at Enron and WorldCom |
|
|
569 | (1) |
|
15-4 The Principal-Agent Model |
|
|
569 | (8) |
|
15-4a The Efficiency of Alternative Hiring Arrangements |
|
|
569 | (2) |
|
15-4b Creative Ingenuity and the Moral Hazard Problem in Managerial Contracting |
|
|
571 | (2) |
|
15-4c Formalizing the Principal-Agent Problem |
|
|
573 | (1) |
|
15-4d Screening and Sorting Managerial Talent with Optimal Incentives Contracts |
|
|
574 | (10) |
|
What Went Right/What Went Wrong: Why Have Restricted Stock Grants Replaced Executive Stock Options at Microsoft? |
|
|
575 | (2) |
|
15-5 Choosing the Efficient Organizational Form |
|
|
577 | (5) |
|
What Went Right/What Went Wrong: Cable Allies Refuse to Adopt Microsoft's WebTV as an Industry Standard |
|
|
580 | (1) |
|
International Perspectives: Economies of Scale and International Joint Ventures in Chip Making |
|
|
581 | (1) |
|
15-6 Prospect Theory Motivates Full-Line Forcing |
|
|
582 | (2) |
|
15-7 Vertical Integration |
|
|
584 | (5) |
|
What Went Right/What Went Wrong: Dell Replaces Vertical Integration with Virtual Integration |
|
|
587 | (1) |
|
15-7a The Dissolution of Assets in a Partnership |
|
|
588 | (1) |
|
|
|
589 | (2) |
|
|
|
591 | (1) |
|
Case Exercise: Borders Books and Amazon.com Decide to Do Business Together |
|
|
592 | (1) |
|
Case Exercise: Designing a Managerial Incentive Contract |
|
|
592 | (1) |
|
Case Exercise: The Division of Investment Banking Fees in a Syndicate |
|
|
593 | (1) |
|
15A Auction Design and Information Economics |
|
|
594 | (24) |
|
15A-1 Optimal Mechanism Design |
|
|
594 | (1) |
|
15A-1a Queue Service Rules |
|
|
594 | (1) |
|
15A-2 First-Come, First-Served versus Last-Come, First-Served |
|
|
595 | (2) |
|
15A-2a Stratified Lotteries for Concerts |
|
|
596 | (1) |
|
|
|
597 | (14) |
|
|
|
597 | (1) |
|
15A-3b Winner's Curse in Asymmetric Information Bidding Games |
|
|
598 | (2) |
|
15A-3c Information Revelation in Common-Value Auctions |
|
|
600 | (1) |
|
15A-3d Bayesian Strategy with Open Bidding Design |
|
|
601 | (2) |
|
15A-3e Strategic Underbidding in Private- Value Auctions |
|
|
603 | (2) |
|
15A-3f Second-Highest Sealed-Bid Auctions: A Revelation Mechanism |
|
|
605 | (2) |
|
15A-3g Revenue Equivalence of Alternative Auction Types |
|
|
607 | (2) |
|
15A-3h Contractual Approaches to Asymmetric Information in Online Auctions |
|
|
609 | (2) |
|
15A-4 Incentive-Compatible Revelation Mechanisms |
|
|
611 | (13) |
|
15A-4a Cost Revelation in Joint Ventures and Partnerships |
|
|
611 | (1) |
|
15A-4b Cost Overruns with Simple Profit-Sharing Partnerships |
|
|
612 | (2) |
|
15A-4c Clarke-Groves Incentive-Compatible Revelation Mechanism |
|
|
614 | (1) |
|
15A-4d An Optimal Incentives Contract |
|
|
614 | (1) |
|
International Perspectives: Joint Venture in Memory Chips: IBM, Siemens, and Toshiba |
|
|
615 | (1) |
|
15A-4e Implementation of IC Contracts |
|
|
616 | (1) |
|
International Perspectives: Whirlpool's Joint Venture in Appliances Improves upon Maytag's Outright Purchase of Hoover |
|
|
617 | (1) |
|
|
|
618 | (1) |
|
|
|
619 | (1) |
|
Case Exercise: Spectrum Auction |
|
|
620 | (1) |
|
Case Exercise: Debugging Computer Software: Versioning at Intel |
|
|
621 | (2) |
|
|
|
623 | (37) |
|
|
|
623 | (1) |
|
Managerial Challenge: Cap and Trade, Deregulation, and the Coase Theorem |
|
|
623 | (1) |
|
16-1 The Regulation of Market Structure and Conduct |
|
|
624 | (3) |
|
|
|
625 | (1) |
|
|
|
625 | (1) |
|
16-1c Contestable Markets |
|
|
626 | (1) |
|
16-2 Antitrust Statutes and Their Regulatory Enforcement |
|
|
627 | (3) |
|
16-2a The Sherman Act (1890) |
|
|
627 | (1) |
|
16-2b The Clayton Act (1914) |
|
|
627 | (1) |
|
16-2c The Robinson-Patman Act (1936) |
|
|
628 | (1) |
|
16-2d The Hart-Scott-Rodino Antitrust Improvement Act (1976) |
|
|
629 | (1) |
|
16-3 Antitrust Prohibition of Selected Business Decisions |
|
|
630 | (7) |
|
16-3a Collusion: Price Fixing |
|
|
630 | (2) |
|
16-3b Mergers That Substantially Lessen Competition |
|
|
632 | (1) |
|
16-3c Merger Guidelines (2010) |
|
|
633 | (1) |
|
|
|
633 | (2) |
|
16-3e Wholesale Price Discrimination |
|
|
635 | (1) |
|
|
|
636 | (1) |
|
16-3g Resale Price Maintenance Agreements |
|
|
636 | (1) |
|
16-4 Command and Control Regulatory Constraints: An Economic Analysis |
|
|
637 | (3) |
|
16-4a The Deregulation Movement |
|
|
639 | (1) |
|
What Went Right/What Went Wrong: The Need for a Regulated Clearinghouse to Control Counterparty Risk at AIG |
|
|
639 | (1) |
|
16-5 Regulation of Externalities |
|
|
640 | (7) |
|
16-5a Coasian Bargaining for Reciprocal Externalities |
|
|
641 | (1) |
|
16-5b Qualifications of the Coase Theorem |
|
|
642 | (1) |
|
16-5c Impediments to Bargaining |
|
|
643 | (1) |
|
16-5d Resolution of Externalities by Regulatory Directive |
|
|
644 | (1) |
|
16-5e Resolution of Externalities by Taxes and Subsidies |
|
|
645 | (2) |
|
16-5f Resolution of Externalities by Sale of Pollution Rights: Cap and Trade |
|
|
647 | (1) |
|
16-6 Governmental Protection of Business |
|
|
647 | (1) |
|
16-6a Licensing and Permitting |
|
|
647 | (1) |
|
|
|
648 | (1) |
|
16-7 The Optimal Deployment Decision: To License or Not |
|
|
648 | (6) |
|
16-7a Pros and Cons of Patent Protection and Licensure of Trade Secrets |
|
|
649 | (4) |
|
What Went Right/What Went Wrong: Delayed Release at Aventis |
|
|
650 | (2) |
|
What Went Right/What Went Wrong: Technology Licenses Cost Palm Its Lead in PDAs |
|
|
652 | (1) |
|
What Went Right/What Went Wrong: Motorola: What They Didn't Know Hurt Them |
|
|
653 | (1) |
|
16-7b Conclusion on Licensing |
|
|
653 | (1) |
|
|
|
654 | (1) |
|
|
|
655 | (2) |
|
Case Exercise: Do Luxury Good Manufacturers Have a Legitimate Interest in Minimum Resale Price Maintenance: Leegin v. Kay's Kloset? |
|
|
657 | (1) |
|
Case Exercise: Microsoft Tying Arrangements |
|
|
658 | (1) |
|
Case Exercise: Music Recording Industry Consolidating |
|
|
659 | (1) |
|
17 Long-Term Investment Analysis |
|
|
660 | |
|
|
|
660 | (1) |
|
Managerial Challenge: Industrial Renaissance in America: Insourcing of GE Appliances |
|
|
660 | (1) |
|
17-1 The Nature of Capital Expenditure Decisions |
|
|
661 | (1) |
|
17-2 A Basic Framework for Capital Budgeting |
|
|
662 | (1) |
|
17-3 The Capital Budgeting Process |
|
|
662 | (6) |
|
17-3a Generating Capital Investment Projects |
|
|
663 | (1) |
|
17-3b Estimating Cash Flows |
|
|
663 | (2) |
|
17-3c Evaluating and Choosing the Investment Projects to Implement |
|
|
665 | (3) |
|
17-4 Estimating the Firm's Cost of Capital |
|
|
668 | (4) |
|
17-4a Cost of Debt Capital |
|
|
669 | (1) |
|
17-4b Cost of Internal Equity Capital |
|
|
669 | (2) |
|
17-4c Cost of External Equity Capital |
|
|
671 | (1) |
|
17-4d Weighted Cost of Capital |
|
|
671 | (1) |
|
17-5 Cost-Benefit Analysis |
|
|
672 | (2) |
|
17-5a Accept-Reject Decisions |
|
|
673 | (1) |
|
17-5b Program-Level Analysis |
|
|
674 | (1) |
|
17-6 Steps in Cost-Benefit Analysis |
|
|
674 | (2) |
|
17-7 Objectives and Constraints in Cost-Benefit Analysis |
|
|
676 | (1) |
|
17-8 Analysis and Valuation of Benefits and Costs |
|
|
677 | (2) |
|
|
|
677 | (1) |
|
|
|
677 | (1) |
|
17-8c Indirect Costs or Benefits and Intangibles |
|
|
677 | (1) |
|
17-8d The Appropriate Rate of Discount |
|
|
678 | (1) |
|
17-9 Cost-Effectiveness Analysis |
|
|
679 | (1) |
|
|
|
679 | (1) |
|
17-9b Objective-Level Studies |
|
|
680 | (1) |
|
|
|
680 | (1) |
|
|
|
681 | (3) |
|
Case Exercise: Industrial Development Tax Relief and Incentives |
|
|
684 | (1) |
|
Case Exercise: Multigenerational Effects of Ozone Depletion and Greenhouse Gases |
|
|
685 | (3) |
|
Case Exercise: Can Tidal Power Be Harnessed in the Bay of Fundy |
|
|
688 | |
| Appendices |
|
|
A The Time Value of Money |
|
|
A-1 | |
|
B Differential Calculus Techniques in Management |
|
|
B-1 | |
|
|
|
C-1 | |
| Check Answers to Selected End-of-Chapter Exercises |
|
D-1 | |
| Glossary |
|
G-1 | |
| Index |
|
I-1 | |
| Notes |
|
| 9781533642707 |
|
| Acknowledgements |
|
5 | (2) |
| Foreword |
|
7 | (10) |
| Chapter 1 What on Earth Is Elder Law and Why Is It So Important? |
|
17 | (8) |
|
What on Earth Is Elder Law? |
|
|
17 | (1) |
|
Why is Elder Law So Important? |
|
|
18 | (7) |
| Chapter 2 Foundations of Elder Law Planning |
|
25 | (18) |
|
General Durable Power of Attorney |
|
|
25 | (3) |
|
|
|
27 | (1) |
|
|
|
27 | (1) |
|
Healthcare Power of Attorney |
|
|
28 | (3) |
|
Vacationing and Healthcare Directives |
|
|
28 | (3) |
|
|
|
31 | (1) |
|
|
|
31 | (1) |
|
|
|
32 | (1) |
|
Distribution of property and assets. |
|
|
32 | (1) |
|
|
|
32 | (1) |
|
|
|
32 | (1) |
|
Executors: Every Ship Needs a Captain |
|
|
33 | (3) |
|
How to Avoid Liens on Your Estate |
|
|
36 | (1) |
|
How to Keep Your Estate Private |
|
|
37 | (1) |
|
Why Wills Are Still Necessary |
|
|
37 | (2) |
|
The Importance of Pre-Planning: A Lesson from my Grandmother |
|
|
39 | (451) |
|
Pre-Need Funeral Planning |
|
|
490 | |
|
Interview with Cecil M. Burton, Funeral Home Owner and Director |
|
|
41 | (2) |
| Chapter 3 What Is Long Term Care? |
|
43 | (34) |
|
Independent Living Facilities |
|
|
45 | (1) |
|
Assisted Living Facilities |
|
|
45 | (6) |
|
Spotlight on: Brookdale Senior Living |
|
|
47 | (4) |
|
|
|
51 | (4) |
|
Spotlight on: Peak Resources |
|
|
51 | (4) |
|
|
|
55 | (3) |
|
Spotlight on: Life Enrichment Center |
|
|
55 | (3) |
|
|
|
58 | (11) |
|
Home Health Care: The Wave of the Future? |
|
|
58 | (1) |
|
|
|
59 | (1) |
|
Home Health Care Technology |
|
|
59 | (2) |
|
Advantages of Home Health Care |
|
|
61 | (1) |
|
Spotlight On: Bayada Home Health Care |
|
|
62 | (3) |
|
Paying for Home Healthcare |
|
|
65 | (4) |
|
What is the difference in Home Healthcare and Home Care? |
|
|
69 | (4) |
|
Spotlight on: Helping Hands Nursing Service, Inc. |
|
|
69 | (4) |
|
|
|
73 | (4) |
|
|
|
73 | (4) |
| Chapter 4 A Special Word on Dementia and Alzheimer's |
|
77 | (10) |
|
|
|
77 | (813) |
|
|
|
78 | (1) |
|
|
|
79 | (1) |
|
|
|
79 | (811) |
|
Spotlight on: Teepa Snow, Expert on Dementia and Alzheimer's |
|
|
890 | |
|
Concluding Thoughts on Dementia and Alzheimer's |
|
|
80 | (7) |
| Chapter 5 Senior Dental Care |
|
87 | (10) |
|
Impact on Health and Well-Being |
|
|
88 | (1) |
|
|
|
89 | (8) |
|
Spotlight on: Senior Dental Care |
|
|
91 | (6) |
| Chapter 6 Medicaid Crisis Planning: How to Plan for a Medicaid Crisis |
|
97 | (24) |
|
The Difference Between Medicare and Medicaid |
|
|
97 | (10) |
|
When Medicaid in North Carolina Will Pay for Long-Term Care in a Nursing Home |
|
|
98 | (8) |
|
How Medicare Can Help You |
|
|
106 | (1) |
|
|
|
106 | (1) |
|
The Importance of Planning Ahead |
|
|
107 | (1) |
|
So what is a Medicaid Crisis? |
|
|
107 | (4) |
|
Why is Paying Out of Pocket a Big Deal? |
|
|
108 | (1) |
|
|
|
109 | (2) |
|
|
|
111 | (5) |
|
Standard Life Estate Deeds |
|
|
111 | (1) |
|
Enhanced Life Estate Deeds, a.k.a. Lady Bird Deeds |
|
|
112 | (4) |
|
Using Medicaid Compliant Annuities to Save Your Money from a Medicaid Spend-Down |
|
|
116 | (5) |
|
|
|
118 | (1) |
|
|
|
119 | (1) |
|
Types of Medicaid Compliant Annuity Payouts |
|
|
119 | (2) |
| Chapter 7 Veterans Benefits |
|
121 | (20) |
|
Aid and Attendance: What Benefits Are Available for Veterans |
|
|
121 | (6) |
|
Proposed Changes to the VA Pension Eligibility Rules |
|
|
127 | (9) |
|
Current Reading of the Law |
|
|
127 | (1) |
|
|
|
128 | (1) |
|
|
|
129 | (1261) |
|
Calculating your Countable Income |
|
|
1390 | |
|
Spotlight on: Veterans and the American Legion |
|
|
132 | (4) |
|
Interview with World War II Veteran, My Grandfather, J.C. Horne: |
|
|
136 | (5) |
| Chapter 8 Estate Taxes: To Plan or not to Plan? There is No Question! |
|
141 | (8) |
|
Estate Tax Through History |
|
|
142 | (2) |
|
Application of and Planning for the Estate Tax |
|
|
144 | (1) |
|
|
|
145 | (1) |
|
Three Top Strategies and Best Practices |
|
|
146 | (3) |
|
Use a GRAT - a Grantor Retained Annuity Trust |
|
|
146 | (1) |
|
Make a Charitable Contribution |
|
|
147 | (1) |
|
Consider a Family Limited Partnership |
|
|
147 | (2) |
| Chapter 9 Choose Wisely, Grasshopper: Selecting the Right Attorney and Firm |
|
149 | (8) |
|
|
|
151 | (1) |
|
|
|
151 | (1) |
|
|
|
152 | (3) |
|
|
|
155 | (1) |
|
|
|
155 | (1) |
|
|
|
155 | (2) |
| Chapter 10 The Role and Benefit of Technology in Elder Law |
|
157 | (8) |
|
eDocs Access System Keeps your Important Documents at your Fingertips |
|
|
158 | (1) |
|
Steps to Leaving a Different Kind of Legacy |
|
|
159 | (26) |
|
What to Include in Legacy Videos |
|
|
160 | (1) |
|
The Priceless Benefits of Legacy Videos |
|
|
160 | (1) |
|
The Simple Process of Creating a Legacy |
|
|
161 | (1) |
|
The Importance of Constant Communication |
|
|
162 | (3) |
| Frequently Asked Questions |
|
165 | (8) |
| Glossary Of Terms |
|
173 | (12) |
| Checklists: |
|
185 | (4) |
|
Checklist For Veterans Aid & Attendance Benefits |
|
|
185 | (2) |
|
|
|
187 | (2) |
| End Notes For Glossary Of Terms |
|
189 | (4) |
| About The Author |
|
193 | |
