微观经济管理学与财务知识分析规划

,Chapter3,ConsumerBehavior,Chapter3:ConsumerBehavior,Slide2,TopicstobeDiscussed,ConsumerPreferencesBudgetConstraintsConsumerChoiceRevealedPreferences,Chapter3:ConsumerBehavior,Slide3,TopicstobeDiscussed,MarginalUtilityandConsumerChoicesCost-of-LivingIndexes,Chapter3:ConsumerBehavior,Slide4,ConsumerBehavior,Twoapplicationsthatillustratetheimportanceoftheeconomictheoryofconsumerbehaviorare:Apple-CinnamonCheeriosTheFoodStampProgram.,Chapter3:ConsumerBehavior,Slide5,ConsumerBehavior,GeneralMillshadtodeterminehowhighapricetochargeforApple-CinnamonCheeriosbeforeitwenttothemarket.,Chapter3:ConsumerBehavior,Slide6,ConsumerBehavior,Whenthefoodstampprogramwasestablishedintheearly1960s,thedesignershadtodeterminetowhatextentthefoodstampswouldprovidepeoplewithmorefoodandnotjustsimplysubsidizethefoodtheywouldhaveboughtanyway.,Chapter3:ConsumerBehavior,Slide7,ConsumerBehavior,Thesetwoproblemsrequireanunderstandingoftheeconomictheoryofconsumerbehavior.,Chapter3:ConsumerBehavior,Slide8,ConsumerBehavior,Therearethreestepsinvolvedinthestudyofconsumerbehavior.1)Wewillstudyconsumerpreferences.Todescribehowandwhypeoplepreferonegoodtoanother.,Chapter3:ConsumerBehavior,Slide9,ConsumerBehavior,Therearethreestepsinvolvedinthestudyofconsumerbehavior.2)Thenwewillturntobudgetconstraints.Peoplehavelimitedincomes.,Chapter3:ConsumerBehavior,Slide10,ConsumerBehavior,Therearethreestepsinvolvedinthestudyofconsumerbehavior.3)Finally,wewillcombineconsumerpreferencesandbudgetconstraintstodetermineconsumerchoices.Whatcombinationofgoodswillconsumersbuytomaximizetheirsatisfaction?,Chapter3:ConsumerBehavior,Slide11,ConsumerPreferences,Amarketbasketisacollectionofoneormorecommodities.Onemarketbasketmaybepreferredoveranothermarketbasketcontainingadifferentcombinationofgoods.,MarketBaskets,Chapter3:ConsumerBehavior,Slide12,ConsumerPreferences,ThreeBasicAssumptions1)Preferencesarecomplete.2)Preferencesaretransitive.3)Consumersalwaysprefermoreofanygoodtoless.,MarketBaskets,Chapter3:ConsumerBehavior,Slide13,ConsumerPreferences,A2030B1050D4020E3040G1020H1040,MarketBasketUnitsofFoodUnitsofClothing,Chapter3:ConsumerBehavior,Slide14,ConsumerPreferences,Indifferencecurvesrepresentallcombinationsofmarketbasketsthatprovidethesamelevelofsatisfactiontoaperson.,IndifferenceCurves,Chapter3:ConsumerBehavior,Slide15,ConsumerPreferences,Food(unitsperweek),10,20,30,40,10,20,30,40,Clothing(unitsperweek),50,Chapter3:ConsumerBehavior,Slide16,ConsumerPreferences,Food(unitsperweek),10,20,30,40,10,20,30,40,Clothing(unitsperweek),50,Chapter3:ConsumerBehavior,Slide17,ConsumerPreferences,IndifferenceCurvesIndifferencecurvesslopedownwardtotheright.Ifitslopedupwarditwouldviolatetheassumptionthatmoreofanycommodityispreferredtoless.,Chapter3:ConsumerBehavior,Slide18,ConsumerPreferences,IndifferenceCurvesAnymarketbasketlyingaboveandtotherightofanindifferencecurveispreferredtoanymarketbasketthatliesontheindifferencecurve.,Chapter3:ConsumerBehavior,Slide19,ConsumerPreferences,Anindifferencemapisasetofindifferencecurvesthatdescribesapersonspreferencesforallcombinationsoftwocommodities.Eachindifferencecurveinthemapshowsthemarketbasketsamongwhichthepersonisindifferent.,IndifferenceMaps,Chapter3:ConsumerBehavior,Slide20,ConsumerPreferences,IndifferenceCurvesFinally,indifferencecurvescannotcross.Thiswouldviolatetheassumptionthatmoreispreferredtoless.,Chapter3:ConsumerBehavior,Slide21,ConsumerPreferences,Food(unitsperweek),Clothing(unitsperweek),Chapter3:ConsumerBehavior,Slide22,ConsumerPreferences,Food(unitsperweek),Clothing(unitsperweek),IndifferenceCurvesCannotCross,Chapter3:ConsumerBehavior,Slide23,ConsumerPreferences,Food(unitsperweek),Clothing(unitsperweek),2,3,4,5,1,2,4,6,8,10,12,14,16,Question:Doesthisrelationholdforgivingupfoodtogetclothing?,Chapter3:ConsumerBehavior,Slide24,ConsumerPreferences,Themarginalrateofsubstitution(MRS)quantifiestheamountofonegoodaconsumerwillgiveuptoobtainmoreofanothergood.Itismeasuredbytheslopeoftheindifferencecurve.,MarginalRateofSubstitution,Chapter3:ConsumerBehavior,Slide25,ConsumerPreferences,Food(unitsperweek),Clothing(unitsperweek),2,3,4,5,1,2,4,6,8,10,12,14,16,A,B,D,E,G,-6,1,1,1,1,-4,-2,-1,MRS=6,MRS=2,Chapter3:ConsumerBehavior,Slide26,ConsumerPreferences,Wewillnowaddafourthassumptionregardingconsumerpreference:Alonganindifferencecurvethereisadiminishingmarginalrateofsubstitution.NotetheMRSforABwas6,whilethatforDEwas2.,MarginalRateofSubstitution,Chapter3:ConsumerBehavior,Slide27,ConsumerPreferences,QuestionWhatarethefirstthreeassumptions?,MarginalRateofSubstitution,Chapter3:ConsumerBehavior,Slide28,ConsumerPreferences,Indifferencecurvesareconvexbecauseasmoreofonegoodisconsumed,aconsumerwouldprefertogiveupfewerunitsofasecondgoodtogetadditionalunitsofthefirstone.Consumerspreferabalancedmarketbasket,MarginalRateofSubstitution,Chapter3:ConsumerBehavior,Slide29,ConsumerPreferences,PerfectSubstitutesandPerfectComplementsTwogoodsareperfectsubstituteswhenthemarginalrateofsubstitutionofonegoodfortheotherisconstant.,MarginalRateofSubstitution,Chapter3:ConsumerBehavior,Slide30,ConsumerPreferences,PerfectSubstitutesandPerfectComplementsTwogoodsareperfectcomplementswhentheindifferencecurvesforthegoodsareshapedasrightangles.,MarginalRateofSubstitution,Chapter3:ConsumerBehavior,Slide31,ConsumerPreferences,OrangeJuice(glasses),AppleJuice(glasses),2,3,4,1,1,2,3,4,0,PerfectSubstitutes,Chapter3:ConsumerBehavior,Slide32,ConsumerPreferences,RightShoes,LeftShoes,2,3,4,1,1,2,3,4,0,PerfectComplements,Chapter3:ConsumerBehavior,Slide33,ConsumerPreferences,BADSThingsforwhichlessispreferredtomoreExamplesAirpollutionAsbestos,Chapter3:ConsumerBehavior,Slide34,ConsumerPreferences,WhatDoYouThink?HowcanweaccountforBadsintheanalysisofconsumerpreferences?,Chapter3:ConsumerBehavior,Slide35,ConsumerPreferences,Automobileexecutivesmustregularlydecidewhentointroducenewmodelsandhowmuchmoneytoinvestinrestyling.,DesigningNewAutomobiles(I),Chapter3:ConsumerBehavior,Slide36,ConsumerPreferences,Ananalysisofconsumerpreferenceswouldhelptodeterminewhenandifcarcompaniesshouldchangethestylingoftheircars.,DesigningNewAutomobiles(I),Chapter3:ConsumerBehavior,Slide37,ConsumerPreferences,Styling,Performance,ConsumerPreferenceA:HighMRS,Chapter3:ConsumerBehavior,Slide38,ConsumerPreferences,Styling,Performance,ConsumerPreferenceB:LowMRS,Chapter3:ConsumerBehavior,Slide39,ConsumerPreferences,WhatDoYouThink?Howcanwedeterminetheconsumerspreference?,DesigningNewAutomobiles(I),Chapter3:ConsumerBehavior,Slide40,ConsumerPreferences,ArecentstudyofautomobiledemandintheUnitedStatesshowsthatoverthepasttwodecadesmostconsumershavepreferredstylingoverperformance.,DesigningNewAutomobiles(I),Chapter3:ConsumerBehavior,Slide41,ConsumerPreferences,GrowthofJapaneseImports1970sand1980s15%ofdomesticcarsunderwentastylechangeeachyearThiscomparesto23%forimports,DesigningNewAutomobiles(I),Chapter3:ConsumerBehavior,Slide42,ConsumerPreferences,UtilityUtility:Numericalscorerepresentingthesatisfactionthataconsumergetsfromagivenmarketbasket.,Chapter3:ConsumerBehavior,Slide43,ConsumerPreferences,UtilityIfbuying3copiesofMicroeconomicsmakesyouhappierthanbuyingoneshirt,thenwesaythatthebooksgiveyoumoreutilitythantheshirt.,Chapter3:ConsumerBehavior,Slide44,ConsumerPreferences,UtilityFunctionsAssume:Theutilityfunctionforfood(F)andclothing(C)U(F,C)=F+2CMarketBaskets:FunitsCunitsU(F,C)=F+2CA838+2(3)=14B646+2(4)=14C444+2(4)=12TheconsumerisindifferenttoA&BTheconsumerprefersA&BtoC,Chapter3:ConsumerBehavior,Slide45,ConsumerPreferences,Food(unitsperweek),10,15,5,5,10,15,0,Clothing(unitsperweek),UtilityFunctions&IndifferenceCurves,Chapter3:ConsumerBehavior,Slide46,ConsumerPreferences,OrdinalVersusCardinalUtilityOrdinalUtilityFunction:placesmarketbasketsintheorderofmostpreferredtoleastpreferred,butitdoesnotindicatehowmuchonemarketbasketispreferredtoanother.CardinalUtilityFunction:utilityfunctiondescribingtheextenttowhichonemarketbasketispreferredtoanother.,Chapter3:ConsumerBehavior,Slide47,ConsumerPreferences,OrdinalVersusCardinalRankingsTheactualunitofmeasurementforutilityisnotimportant.Therefore,anordinalrankingissufficienttoexplainhowmostindividualdecisionsaremade.,Chapter3:ConsumerBehavior,Slide48,BudgetConstraints,Preferencesdonotexplainallofconsumerbehavior.Budgetconstraintsalsolimitanindividualsabilitytoconsumeinlightofthepricestheymustpayforvariousgoodsandservices.,Chapter3:ConsumerBehavior,Slide49,BudgetConstraints,TheBudgetLineThebudgetlineindicatesallcombinationsoftwocommoditiesforwhichtotalmoneyspentequalstotalincome.,Chapter3:ConsumerBehavior,Slide50,BudgetConstraints,TheBudgetLineLetFequaltheamountoffoodpurchased,andCistheamountofclothing.Priceoffood=Pfandpriceofclothing=PcThenPfFistheamountofmoneyspentonfood,andPcCistheamountofmoneyspentonclothing.,Chapter3:ConsumerBehavior,Slide51,BudgetConstraints,Thebudgetlinethencanbewritten:,Chapter3:ConsumerBehavior,Slide52,BudgetConstraints,A040$80B2030$80D4020$80E6010$80G800$80,MarketBasketFood(F)Clothing(C)TotalSpendingPf=($1)Pc=($2)PfF+PcC=I,Chapter3:ConsumerBehavior,Slide53,(I/PC)=40,BudgetConstraints,Food(unitsperweek),40,60,80=(I/PF),20,10,20,30,0,Clothing(unitsperweek),Pc=$2Pf=$1I=$80,Chapter3:ConsumerBehavior,Slide54,BudgetConstraints,TheBudgetLineAsconsumptionmovesalongabudgetlinefromtheintercept,theconsumerspendslessononeitemandmoreontheother.Theslopeofthelinemeasurestherelativecostoffoodandclothing.Theslopeisthenegativeoftheratioofthepricesofthetwogoods.,Chapter3:ConsumerBehavior,Slide55,BudgetConstraints,TheBudgetLineTheslopeindicatestherateatwhichthetwogoodscanbesubstitutedwithoutchangingtheamountofmoneyspent.,Chapter3:ConsumerBehavior,Slide56,BudgetConstraints,TheBudgetLineTheverticalintercept(I/PC),illustratesthemaximumamountofCthatcanbepurchasedwithincomeI.Thehorizontalintercept(I/PF),illustratesthemaximumamountofFthatcanbepurchasedwithincomeI.,Chapter3:ConsumerBehavior,Slide57,BudgetConstraints,TheEffectsofChangesinIncomeandPricesIncomeChangesAnincreaseinincomecausesthebudgetlinetoshiftoutward,paralleltotheoriginalline(holdingpricesconstant).,Chapter3:ConsumerBehavior,Slide58,BudgetConstraints,TheEffectsofChangesinIncomeandPricesIncomeChangesAdecreaseinincomecausesthebudgetlinetoshiftinward,paralleltotheoriginalline(holdingpricesconstant).,Chapter3:ConsumerBehavior,Slide59,BudgetConstraints,Food(unitsperweek),Clothing(unitsperweek),80,120,160,40,20,40,60,80,0,Chapter3:ConsumerBehavior,Slide60,BudgetConstraints,TheEffectsofChangesinIncomeandPricesPriceChangesIfthepriceofonegoodincreases,thebudgetlineshiftsinward,pivotingfromtheothergoodsintercept.,Chapter3:ConsumerBehavior,Slide61,BudgetConstraints,TheEffectsofChangesinIncomeandPricesPriceChangesIfthepriceofonegooddecreases,thebudgetlineshiftsoutward,pivotingfromtheothergoodsintercept.,Chapter3:ConsumerBehavior,Slide62,BudgetConstraints,Food(unitsperweek),Clothing(unitsperweek),80,120,160,40,40,Chapter3:ConsumerBehavior,Slide63,BudgetConstraints,TheEffectsofChangesinIncomeandPricesPriceChangesIfthetwogoodsincreaseinprice,buttheratioofthetwopricesisunchanged,theslopewillnotchange.,Chapter3:ConsumerBehavior,Slide64,BudgetConstraints,TheEffectsofChangesinIncomeandPricesPriceChangesHowever,thebudgetlinewillshiftinwardtoapointparalleltotheoriginalbudgetline.,Chapter3:ConsumerBehavior,Slide65,BudgetConstraints,TheEffectsofChangesinIncomeandPricesPriceChangesIfthetwogoodsdecreaseinprice,buttheratioofthetwopricesisunchanged,theslopewillnotchange.,Chapter3:ConsumerBehavior,Slide66,BudgetConstraints,TheEffectsofChangesinIncomeandPricesPriceChangesHowever,thebudgetlinewillshiftoutwardtoapointparalleltotheoriginalbudgetline.,Chapter3:ConsumerBehavior,Slide67,ConsumerChoice,Consumerschooseacombinationofgoodsthatwillmaximizethesatisfactiontheycanachieve,giventhelimitedbudgetavailabletothem.,Chapter3:ConsumerBehavior,Slide68,ConsumerChoice,Themaximizingmarketbasketmustsatisfytwoconditions:1)Itmustbelocatedonthebudgetline.2)Mustgivetheconsumerthemostpreferredcombinationofgoodsandservices.,Chapter3:ConsumerBehavior,Slide69,Recall,theslopeofanindifferencecurveis:,ConsumerChoice,Further,theslopeofthebudgetlineis:,Chapter3:ConsumerBehavior,Slide70,ConsumerChoice,Therefore,itcanbesaidthatsatisfactionismaximizedwhere:,Chapter3:ConsumerBehavior,Slide71,ConsumerChoice,Itcanbesaidthatsatisfactionismaximizedwhenmarginalrateofsubstitution(ofFandC)isequaltotheratiooftheprices(ofFandC).,Chapter3:ConsumerBehavior,Slide72,ConsumerChoice,Food(unitsperweek),Clothing(unitsperweek),40,80,20,20,30,40,0,Chapter3:ConsumerBehavior,Slide73,ConsumerChoice,Pc=$2Pf=$1I=$80,Food(unitsperweek),Clothing(unitsperweek),40,80,20,20,30,40,0,Chapter3:ConsumerBehavior,Slide74,ConsumerChoice,Pc=$2Pf=$1I=$80,Food(unitsperweek),Clothing(unitsperweek),40,80,20,20,30,40,0,Chapter3:ConsumerBehavior,Slide75,ConsumerChoice,Considertwogroupsofconsumers,eachwishingtospend$10,000onthestylingandperformanceofcars.Eachgrouphasdifferentpreferences.,DesigningNewAutomobiles(II),Chapter3:ConsumerBehavior,Slide76,ConsumerChoice,Byfindingthepointoftangencybetweenagroupsindifferencecurveandthebudgetconstraintautocompaniescandesignaproductionandmarketingplan.,DesigningNewAutomobiles(II),Chapter3:ConsumerBehavior,Slide77,DesigningNewAutomobiles(II),Styling,Performance,$10,000,$10,000,$3,000,$7,000,Chapter3:ConsumerBehavior,Slide78,DesigningNewAutomobiles(II),Styling,$10,000,$10,000,Performance,Chapter3:ConsumerBehavior,Slide79,ConsumerChoice,Choosingbetweenanon-matchingandmatchinggranttofundpoliceexpenditures,DecisionMaking&PublicPolicy,Chapter3:ConsumerBehavior,Slide80,ConsumerChoice,Non-matchingGrant,PoliceExpenditures($),PrivateExpenditures($),O,Chapter3:ConsumerBehavior,Slide81,R,ConsumerChoice,Non-matchingGrant,P,PoliceExpenditures($),PrivateExpenditures($),O,S,Q,A,Chapter3:ConsumerBehavior,Slide82,T,ConsumerChoice,MatchingGrant,Police($),PrivateExpenditures($),O,Q,S,R,A,Chapter3:ConsumerBehavior,Slide83,T,NonmatchingGrantPointBOU:PrivateexpenditureOZ:PoliceexpenditureMatchingGrantPointCOW:PrivateexpenditureOX:Policeexpenditure,W,X,ConsumerChoice,MatchingGrant,P,Police($),PrivateExpenditures($),O,Q,A,U2,C,R,Chapter3:ConsumerBehavior,Slide84,ConsumerChoice,Acornersolutionexistsifaconsumerbuysinextremes,andbuysallofonecategoryofgoodandnoneofanother.Thisexistswheretheindifferencecurvesaretangenttothehorizontalandverticalaxis.MRSisnotequaltoPA/PB,ACornerSolution,Chapter3:ConsumerBehavior,Slide85,ACornerSolution,IceCream(cup/month),FrozenYogurt(cupsmonthly),B,A,Chapter3:ConsumerBehavior,Slide86,ConsumerChoice,ACornerSolutionAtpointB,theMRSoficecreamforfrozenyogurtisgreaterthantheslopeofthebudgetline.Thissuggeststhatiftheconsumercouldgiveupmorefrozenyogurtforicecreamhewoulddoso.However,thereisnomorefrozenyogurttogiveup!,Chapter3:ConsumerBehavior,Slide87,ConsumerChoice,ACornerSolutionWhenacornersolutionarises,theconsumersMRSdoesnotnecessarilyequalthepriceratio.Inthisinstanceitcanbesaidthat:,Chapter3:ConsumerBehavior,Slide88,ConsumerChoice,ACornerSolutionIftheMRSis,infact,significantlygreaterthanthepriceratio,thenasmalldecreaseinthepriceoffrozenyogurtwillnotaltertheconsumersmarketbasket.,Chapter3:ConsumerBehavior,Slide89,ConsumerChoice,SupposeJaneDoesparentssetupatrustfundforhercollegeeducation.Originally,themoneymustbeusedforeducation.,ACollegeTrustFund,Chapter3:ConsumerBehavior,Slide90,ConsumerChoice,Ifpartofthemoneycouldbeusedforthepurchaseofothergoods,herconsumptionpreferenceschange.,ACollegeTrustFund,Chapter3:ConsumerBehavior,Slide91,ConsumerChoice,Education($),OtherConsumption($),ACollegeTrustFund,Chapter3:ConsumerBehavior,Slide92,RevealedPreferences,Ifweknowthechoicesaconsumerhasmade,wecandeterminewhatherpreferencesareifwehaveinformationaboutasufficientnumberofchoicesthataremadewhenpricesandincomesvary.,Chapter3:ConsumerBehavior,Slide93,D,RevealedPreferences-TwoBudgetLines,l1,A,I1:ChoseAoverBAisrevealedpreferredtoBl2:ChooseBoverDBisrevealedpreferredtoD,Food(unitspermonth),Clothing(unitspermonth),Chapter3:ConsumerBehavior,Slide94,RevealedPreferences-TwoBudgetLines,Food(unitspermonth),Clothing(unitspermonth),Chapter3:ConsumerBehavior,Slide95,Food(unitspermonth),RevealedPreferences-FourBudgetLines,Clothing(unitspermonth),Chapter3:ConsumerBehavior,Slide96,AmountofExercise(hours),RevealedPreferencesforRecreation,OtherRecreationalActivities($),0,25,50,75,20,40,60,80,100,ScenarioRobertasrecreationbudget=$100/wkPriceofexercise=$4/hr/weekExercises10hrs/wkatAgivenU1&I1,WouldtheClubsprofitsincrease?,Chapter3:ConsumerBehavior,Slide97,Marginalutilitymeasurestheadditionalsatisfactionobtainedfromconsumingoneadditionalunitofagood.,MarginalUtilityandConsumerChoice,MarginalUtility,Chapter3:ConsumerBehavior,Slide98,ExampleThemarginalutilityderivedfromincreasingfrom0to1unitsoffoodmightbe9Increasingfrom1to2mightbe7Increasingfrom2to3mightbe5Observation:Marginalutilityisdiminishing,MarginalUtility,MarginalUtilityandConsumerChoice,Chapter3:ConsumerBehavior,Slide99,Theprincipleofdiminishingmarginalutilitystatesthatasmoreandmoreofagoodisconsumed,consumingadditionalamountswillyieldsmallerandsmalleradditionstoutility.,DiminishingMarginalUtility,MarginalUtilityandConsumerChoice,Chapter3:ConsumerBehavior,Slide100,MarginalUtilityandtheIndifferenceCurveIfconsumptionmovesalonganindifferencecurve,theadditionalutilityderivedfromanincreaseintheconsumptiononegood,food(F),mustbalancethelossofutilityfromthedecreaseintheconsumptionintheothergood,clothing(C).,MarginalUtilityandConsumerChoice,Chapter3:ConsumerBehavior,Slide101,Formally:,MarginalUtilityandConsumerChoice,Chapter3:ConsumerBehavior,Slide102,Rearranging:,MarginalUtilityandConsumerChoice,Chapter3:ConsumerBehavior,Slide103,Because:,MarginalUtilityandConsumerChoice,Chapter3:ConsumerBehavior,Slide104,Whenconsumersmaximizesatisfacti