Tsinghua_2005MBA_Lecture_04(Consumer Behavior)(ppt 141页)(英文).ppt

,Lecture4,ConsumerBehavior,Lecture3,Slide2,TopicstobeDiscussed,ConsumerPreferencesBudgetConstraintsConsumerChoiceRevealedPreferencesMarginalUtilityandConsumerChoicesCost-of-LivingIndexes,Lecture3,Slide3,ConsumerPurchasingDecisionMakingProcess,Preference,BudgetConstraint,Choice,Lecture3,Slide4,ConsumerBehavior,Twoapplicationsthatillustratetheimportanceoftheeconomictheoryofconsumerbehaviorare:Apple-CinnamonCheeriosTheFoodStampProgram.,Lecture3,Slide5,ConsumerBehavior,GeneralMillshadtodeterminehowhighapricetochargeforApple-CinnamonCheeriosbeforeitwenttothemarket.,Lecture3,Slide6,ConsumerBehavior,Whenthefoodstampprogramwasestablishedintheearly1960s,thedesignershadtodeterminetowhatextentthefoodstampswouldprovidepeoplewithmorefoodandnotjustsimplysubsidizethefoodtheywouldhaveboughtanyway.,Lecture3,Slide7,ConsumerBehavior,Thesetwoproblemsrequireanunderstandingoftheeconomictheoryofconsumerbehavior.,Lecture3,Slide8,ConsumerBehavior,Therearethreestepsinvolvedinthestudyofconsumerbehavior.1)Wewillstudyconsumerpreferences.Todescribehowandwhypeoplepreferonegoodtoanother.2)Thenwewillturntobudgetconstraints.Peoplehavelimitedincomes.,Lecture3,Slide9,ConsumerBehavior,Therearethreestepsinvolvedinthestudyofconsumerbehavior.3)Finally,wewillcombineconsumerpreferencesandbudgetconstraintstodetermineconsumerchoices.Whatcombinationofgoodswillconsumersbuytomaximizetheirsatisfaction?,Lecture3,Slide10,Example,Doyouagreewiththefollowingstatement?湖南人不怕辣，贵州人辣不怕，四川人怕不辣，可见四川人最能吃辣椒。,Lecture3,Slide11,ConsumerPreferences,Amarketbasketisacollectionofoneormorecommodities.Onemarketbasketmaybepreferredoveranothermarketbasketcontainingadifferentcombinationofgoods.,MarketBaskets,Lecture3,Slide12,ConsumerPreferences,ThreeBasicAssumptions1)Preferencesarecomplete.2)Preferencesaretransitive.3)Consumersalwaysprefermoreofanygoodtoless.,MarketBaskets,Lecture3,Slide13,ConsumerPreferences,A2030B1050D4020E3040G1020H1040,MarketBasketUnitsofFoodUnitsofClothing,Lecture3,Slide14,ConsumerPreferences,Indifferencecurvesrepresentallcombinationsofmarketbasketsthatprovidethesamelevelofsatisfactiontoaperson.,IndifferenceCurves,Lecture3,Slide15,ConsumerPreferences,Food(unitsperweek),10,20,30,40,10,20,30,40,Clothing(unitsperweek),50,Lecture3,Slide16,ConsumerPreferences,Food(unitsperweek),10,20,30,40,10,20,30,40,Clothing(unitsperweek),50,Lecture3,Slide17,ConsumerPreferences,IndifferenceCurvesIndifferencecurvesslopedownwardtotheright.Ifitslopedupwarditwouldviolatetheassumptionthatmoreofanycommodityispreferredtoless.Anymarketbasketlyingaboveandtotherightofanindifferencecurveispreferredtoanymarketbasketthatliesontheindifferencecurve.,Lecture3,Slide18,ConsumerPreferences,Anindifferencemapisasetofindifferencecurvesthatdescribesapersonspreferencesforallcombinationsoftwocommodities.Eachindifferencecurveinthemapshowsthemarketbasketsamongwhichthepersonisindifferent.,IndifferenceMaps,Lecture3,Slide19,ConsumerPreferences,IndifferenceCurvesFinally,indifferencecurvescannotcross.Thiswouldviolatetheassumptionthatmoreispreferredtoless.,Lecture3,Slide20,ConsumerPreferences,Food(unitsperweek),Clothing(unitsperweek),Lecture3,Slide21,ConsumerPreferences,Food(unitsperweek),Clothing(unitsperweek),IndifferenceCurvesCannotCross,Lecture3,Slide22,ConsumerPreferences,Food(unitsperweek),Clothing(unitsperweek),2,3,4,5,1,2,4,6,8,10,12,14,16,Question:Doesthisrelationholdforgivingupfoodtogetclothing?,Lecture3,Slide23,ConsumerPreferences,Themarginalrateofsubstitution(MRS)quantifiestheamountofonegoodaconsumerwillgiveuptoobtainmoreofanothergood.Itismeasuredbytheslopeoftheindifferencecurve.,MarginalRateofSubstitution,Lecture3,Slide24,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,Lecture3,Slide25,ConsumerPreferences,Wewillnowaddafourthassumptionregardingconsumerpreference:Alonganindifferencecurvethereisadiminishingmarginalrateofsubstitution.NotetheMRSforABwas6,whilethatforDEwas2.,MarginalRateofSubstitution,Lecture3,Slide26,ConsumerPreferences,QuestionWhatarethefirstthreeassumptions?,MarginalRateofSubstitution,Lecture3,Slide27,ConsumerPreferences,Indifferencecurvesareconvexbecauseasmoreofonegoodisconsumed,aconsumerwouldprefertogiveupfewerunitsofasecondgoodtogetadditionalunitsofthefirstone.Consumerspreferabalancedmarketbasket,MarginalRateofSubstitution,Lecture3,Slide28,ConsumerPreferences,PerfectSubstitutesandPerfectComplementsTwogoodsareperfectsubstituteswhenthemarginalrateofsubstitutionofonegoodfortheotherisconstant.Twogoodsareperfectcomplementswhentheindifferencecurvesforthegoodsareshapedasrightangles.,MarginalRateofSubstitution,Lecture3,Slide29,ConsumerPreferences,OrangeJuice(glasses),AppleJuice(glasses),2,3,4,1,1,2,3,4,0,PerfectSubstitutes,Lecture3,Slide30,ConsumerPreferences,RightShoes,LeftShoes,2,3,4,1,1,2,3,4,0,PerfectComplements,Lecture3,Slide31,ConsumerPreferences,BADSThingsforwhichlessispreferredtomoreExamplesAirpollutionAsbestos,Lecture3,Slide32,ConsumerPreferences,WhatDoYouThink?HowcanweaccountforBadsintheanalysisofconsumerpreferences?,Lecture3,Slide33,Example:Drawtheindifferencecurvesfortheindividualspreferencefortwogoods:inflationandeconomics,EconomicGrowth,Inflation,Lecture3,Slide34,ConsumerPreferences,Automobileexecutivesmustregularlydecidewhentointroducenewmodelsandhowmuchmoneytoinvestinrestyling.,DesigningNewAutomobiles(I),Lecture3,Slide35,ConsumerPreferences,Ananalysisofconsumerpreferenceswouldhelptodeterminewhenandifcarcompaniesshouldchangethestylingoftheircars.,DesigningNewAutomobiles(I),Lecture3,Slide36,ConsumerPreferences,Styling,Performance,ConsumerPreferenceA:HighMRS,Lecture3,Slide37,ConsumerPreferences,Styling,Performance,ConsumerPreferenceB:LowMRS,Lecture3,Slide38,ConsumerPreferences,WhatDoYouThink?Howcanwedeterminetheconsumerspreference?,DesigningNewAutomobiles(I),Lecture3,Slide39,ConsumerPreferences,ArecentstudyofautomobiledemandintheUnitedStatesshowsthatoverthepasttwodecadesmostconsumershavepreferredstylingoverperformance.,DesigningNewAutomobiles(I),Lecture3,Slide40,ConsumerPreferences,GrowthofJapaneseImports1970sand1980s15%ofdomesticcarsunderwentastylechangeeachyearThiscomparesto23%forimports,DesigningNewAutomobiles(I),Lecture3,Slide41,ConsumerPreferences,UtilityUtility:Numericalscorerepresentingthesatisfactionthataconsumergetsfromagivenmarketbasket.,Lecture3,Slide42,ConsumerPreferences,UtilityIfbuying3copiesofMicroeconomicsmakesyouhappierthanbuyingoneshirt,thenwesaythatthebooksgiveyoumoreutilitythantheshirt.,Lecture3,Slide43,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,Lecture3,Slide44,ConsumerPreferences,Food(unitsperweek),10,15,5,5,10,15,0,Clothing(unitsperweek),UtilityFunctions&IndifferenceCurves,Lecture3,Slide45,ConsumerPreferences,OrdinalVersusCardinalUtilityOrdinalUtilityFunction:placesmarketbasketsintheorderofmostpreferredtoleastpreferred,butitdoesnotindicatehowmuchonemarketbasketispreferredtoanother.CardinalUtilityFunction:utilityfunctiondescribingtheextenttowhichonemarketbasketispreferredtoanother.,Lecture3,Slide46,ConsumerPreferences,OrdinalVersusCardinalRankingsTheactualunitofmeasurementforutilityisnotimportant.Therefore,anordinalrankingissufficienttoexplainhowmostindividualdecisionsaremade.,Lecture3,Slide47,BudgetConstraints,Preferencesdonotexplainallofconsumerbehavior.Budgetconstraintsalsolimitanindividualsabilitytoconsumeinlightofthepricestheymustpayforvariousgoodsandservices.,Lecture3,Slide48,BudgetConstraints,TheBudgetLineThebudgetlineindicatesallcombinationsoftwocommoditiesforwhichtotalmoneyspentequalstotalincome.,Lecture3,Slide49,BudgetConstraints,TheBudgetLineLetFequaltheamountoffoodpurchased,andCistheamountofclothing.Priceoffood=Pfandpriceofclothing=PcThenPfFistheamountofmoneyspentonfood,andPcCistheamountofmoneyspentonclothing.,Lecture3,Slide50,BudgetConstraints,Thebudgetlinethencanbewritten:,Lecture3,Slide51,BudgetConstraints,A040$80B2030$80D4020$80E6010$80G800$80,MarketBasketFood(F)Clothing(C)TotalSpendingPf=($1)Pc=($2)PfF+PcC=I,Lecture3,Slide52,(I/PC)=40,BudgetConstraints,Food(unitsperweek),40,60,80=(I/PF),20,10,20,30,0,Clothing(unitsperweek),Pc=$2Pf=$1I=$80,Lecture3,Slide53,BudgetConstraints,TheBudgetLineAsconsumptionmovesalongabudgetlinefromtheintercept,theconsumerspendslessononeitemandmoreontheother.Theslopeofthelinemeasurestherelativecostoffoodandclothing.Theslopeisthenegativeoftheratioofthepricesofthetwogoods.,Lecture3,Slide54,BudgetConstraints,TheBudgetLineTheslopeindicatestherateatwhichthetwogoodscanbesubstitutedwithoutchangingtheamountofmoneyspent.,Lecture3,Slide55,BudgetConstraints,TheBudgetLineTheverticalintercept(I/PC),illustratesthemaximumamountofCthatcanbepurchasedwithincomeI.Thehorizontalintercept(I/PF),illustratesthemaximumamountofFthatcanbepurchasedwithincomeI.,Lecture3,Slide56,BudgetConstraints,TheEffectsofChangesinIncomeandPricesIncomeChangesAnincreaseinincomecausesthebudgetlinetoshiftoutward,paralleltotheoriginalline(holdingpricesconstant).Adecreaseinincomecausesthebudgetlinetoshiftinward,paralleltotheoriginalline(holdingpricesconstant).,Lecture3,Slide57,BudgetConstraints,Food(unitsperweek),Clothing(unitsperweek),80,120,160,40,20,40,60,80,0,Lecture3,Slide58,BudgetConstraints,TheEffectsofChangesinIncomeandPricesPriceChangesIfthepriceofonegoodincreases,thebudgetlineshiftsinward,pivotingfromtheothergoodsintercept.Ifthepriceofonegooddecreases,thebudgetlineshiftsoutward,pivotingfromtheothergoodsintercept.,Lecture3,Slide59,BudgetConstraints,Food(unitsperweek),Clothing(unitsperweek),80,120,160,40,40,Lecture3,Slide60,BudgetConstraints,TheEffectsofChangesinIncomeandPricesPriceChangesIfthetwogoodsincreaseinprice,buttheratioofthetwopricesisunchanged,theslopewillnotchange.However,thebudgetlinewillshiftinwardtoapointparalleltotheoriginalbudgetline.,Lecture3,Slide61,BudgetConstraints,TheEffectsofChangesinIncomeandPricesPriceChangesIfthetwogoodsdecreaseinprice,buttheratioofthetwopricesisunchanged,theslopewillnotchange.However,thebudgetlinewillshiftoutwardtoapointparalleltotheoriginalbudgetline.,Lecture3,Slide62,ConsumerChoice,Consumerschooseacombinationofgoodsthatwillmaximizethesatisfactiontheycanachieve,giventhelimitedbudgetavailabletothem.,Lecture3,Slide63,ConsumerChoice,Themaximizingmarketbasketmustsatisfytwoconditions:1)Itmustbelocatedonthebudgetline.2)Mustgivetheconsumerthemostpreferredcombinationofgoodsandservices.,Lecture3,Slide64,Recall,theslopeofanindifferencecurveis:,ConsumerChoice,Further,theslopeofthebudgetlineis:,Lecture3,Slide65,ConsumerChoice,Therefore,itcanbesaidthatsatisfactionismaximizedwhere:,Lecture3,Slide66,ConsumerChoice,Itcanbesaidthatsatisfactionismaximizedwhenmarginalrateofsubstitution(ofFandC)isequaltotheratiooftheprices(ofFandC).,Lecture3,Slide67,ConsumerChoice,Food(unitsperweek),Clothing(unitsperweek),40,80,20,20,30,40,0,Lecture3,Slide68,ConsumerChoice,Pc=$2Pf=$1I=$80,Food(unitsperweek),Clothing(unitsperweek),40,80,20,20,30,40,0,Lecture3,Slide69,ConsumerChoice,Pc=$2Pf=$1I=$80,Food(unitsperweek),Clothing(unitsperweek),40,80,20,20,30,40,0,Lecture3,Slide70,ConsumerChoice,Considertwogroupsofconsumers,eachwishingtospend$10,000onthestylingandperformanceofcars.Eachgrouphasdifferentpreferences.,DesigningNewAutomobiles(II),Lecture3,Slide71,ConsumerChoice,Byfindingthepointoftangencybetweenagroupsindifferencecurveandthebudgetconstraintautocompaniescandesignaproductionandmarketingplan.,DesigningNewAutomobiles(II),Lecture3,Slide72,DesigningNewAutomobiles(II),Styling,Performance,$10,000,$10,000,$3,000,$7,000,Lecture3,Slide73,DesigningNewAutomobiles(II),Styling,$10,000,$10,000,Performance,Lecture3,Slide74,ConsumerChoice,Choosingbetweenanon-matchingandmatchinggranttofundpoliceexpenditures,DecisionMaking&PublicPolicy,Lecture3,Slide75,ConsumerChoice,Non-matchingGrant,PoliceExpenditures($),PrivateExpenditures($),O,Lecture3,Slide76,R,ConsumerChoice,Non-matchingGrant,P,PoliceExpenditures($),PrivateExpenditures($),O,S,Q,A,Lecture3,Slide77,T,ConsumerChoice,MatchingGrant,Police($),PrivateExpenditures($),O,Q,S,R,A,Lecture3,Slide78,T,NonmatchingGrantPointBOU:PrivateexpenditureOZ:PoliceexpenditureMatchingGrantPointCOW:PrivateexpenditureOX:Policeexpenditure,W,X,ConsumerChoice,MatchingGrant,P,Police($),PrivateExpenditures($),O,Q,A,U2,C,R,Lecture3,Slide79,ConsumerChoice,Acornersolutionexistsifaconsumerbuysinextremes,andbuysallofonecategoryofgoodandnoneofanother.Thisexistswheretheindifferencecurvesaretangenttothehorizontalandverticalaxis.MRSisnotequaltoPA/PB,ACornerSolution,Lecture3,Slide80,ACornerSolution,IceCream(cup/month),FrozenYogurt(cupsmonthly),B,A,Lecture3,Slide81,ConsumerChoice,ACornerSolutionAtpointB,theMRSoficecreamforfrozenyogurtisgreaterthantheslopeofthebudgetline.Thissuggeststhatiftheconsumercouldgiveupmorefrozenyogurtforicecreamhewoulddoso.However,thereisnomorefrozenyogurttogiveup!,Lecture3,Slide82,ConsumerChoice,ACornerSolutionWhenacornersolutionarises,theconsumersMRSdoesnotnecessarilyequalthepriceratio.Inthisinstanceitcanbesaidthat:,Lecture3,Slide83,ConsumerChoice,ACornerSolutionIftheMRSis,infact,significantlygreaterthanthepriceratio,thenasmalldecreaseinthepriceoffrozenyogurtwillnotaltertheconsumersmarketbasket.,Lecture3,Slide84,ConsumerChoice,SupposeJaneDoesparentssetupatrustfundforhercollegeeducation.Originally,themoneymustbeusedforeducation.,ACollegeTrustFund,Lecture3,Slide85,ConsumerChoice,Ifpartofthemoneycouldbeusedforthepurchaseofothergoods,herconsumptionpreferenceschange.,ACollegeTrustFund,Lecture3,Slide86,ConsumerChoice,Education($),OtherConsumption($),ACollegeTrustFund,Lecture3,Slide87,RevealedPreferences,Ifweknowthechoicesaconsumerhasmade,wecandeterminewhatherpreferencesareifwehaveinformationaboutasufficientnumberofchoicesthataremadewhenpricesandincomesvary.,Lecture3,Slide88,D,RevealedPreferences-TwoBudgetLines,l1,A,I1:ChoseAoverBAisrevealedpreferredtoBl2:ChooseBoverDBisrevealedpreferredtoD,Food(unitspermonth),Clothing(unitspermonth),Lecture3,Slide89,RevealedPreferences-TwoBudgetLines,Food(unitspermonth),Clothing(unitspermonth),Lecture3,Slide90,Food(unitspermonth),RevealedPreferences-FourBudgetLines,Clothing(unitspermonth),Lecture3,Slide91,AmountofExercise(hours),RevealedPreferencesforRecreation,OtherRecreationalActivities($),0,25,50,75,20,40,60,80,100,ScenarioRobertasrecreationbudget=$100/wkPriceofexercise=$4/hr/weekExercises10hrs/wkatAgivenU1&I1,WouldtheClubsprofitsincrease?,Lecture3,Slide92,Marginalutilitymeasurestheadditionalsatisfactionobtainedfromconsumingoneadditionalunitofagood.,MarginalUtilityandConsumerChoice,MarginalUtility,Lecture3,Slide93,ExampleThemarginalutilityderivedfromincreasingfrom0to1unitsoffoodmightbe9Increasingfrom1to2mightbe7Increasingfrom2to3mightbe5Observation:Marginalutilityisdiminishing,MarginalUtility,MarginalUtilityandConsumerChoice,Lecture3,Slide94,Theprincipleofdiminishingmarginalutilitystatesthatasmoreandmoreofagoodisconsumed,consumingadditionalamountswillyieldsmallerandsmalleradditionstoutility.,DiminishingMarginalUtility,MarginalUtilityandConsumerChoice,Lecture3,Slide95,Example:Howtoallocateyoulast10weeksinpreparingfortheGraduateEntranceExamination?,Lecture3,Slide96,MarginalUtilityandtheIndifferenceCurveIfconsumptionmovesalonganindifferencecurve,theadditionalutilityderivedfromanincreaseintheconsumptiononegood,food(F),mustbalancethelossofutilityfromthedecreaseintheconsumptionintheothergood,clothing(C).,MarginalUtilityandConsumerChoice,Lecture3,Slide97,Formally:,MarginalUtilityandConsumerChoice,Lecture3,Slide98,Rearranging:,MarginalUtilityandConsumerChoice,Lecture3,Slide99,Because:,MarginalUtilityandConsumerChoice,Lecture3,Slide100,Whenconsumersmaximizesatisfactionthe:,MarginalUtilityandConsumerChoice,SincetheMRSisalsoequaltotheratioofthemarginalutilitiesofconsumingFandC,itfollowsthat:,Lecture3,Slide101,Whichgivestheequationforutilitymaximization:,MarginalUtilityandConsumerChoice,Lecture3,Slide102,Totalutilityismaximizedwhenthebudgetisallocatedsothatthemarginalutilityperdollarofexpenditureisthesameforeachgood.Thisisreferredtoastheequalmarginalprinciple.,MarginalUtilityandConsumerChoice,Lecture3,Slide103,In1974andagainin1979,thegovernmentimposedpricecontrolsongasoline.Thisresultedinshortagesandgasolinewasrationed.,GasolineRationing,MarginalUtilityandConsumerChoice,Lecture3,Slide104,Nonpricerationingisanalternativetomarketrationing.Underoneformeveryonehasanequalchancetopurchasearationedgood.Gasolineisrationedbylonglinesatthegaspumps.,GasolineRationing,MarginalUtilityandConsumerChoice,Lecture3,Slide105,Rationinghurtssomebylimitingtheamountofgasolinetheycanbuy.Thiscanbeseeninthefollowingmodel.Itappliestoawomanwithanannualincomeof$20,000.,MarginalUtilityandConsumerChoice,Lecture3,Slide106,Thehorizontalaxisshowsherannualconsumptionofgasolineat$1/gallon.Theverticalaxisshowsherremainingincomeafterpurchasinggasoline.,MarginalUtilityandConsumerChoice,Lecture3,Slide107,Gasoline(gallonsperyear),Spendingonothergoods($),20,000,MarginalUtilityandConsumerChoice,Lecture3,Slide108,Example:DirectHousingSubsidyandIndirectHousingSubsidy,I2I1I0,0X0A0X2X1A1A2,E0,E1,E2,Y=IB1B2,Lecture3,Slide109,Cost-of-LivingIndexes,TheCPIiscalculatedeachyearastheratioofthecostofatypicalbundleofconsumergoodsandservicestodayincomparisontothecostduringabaseperiod.,Lecture3,Slide110,Cost-of-LivingIndexes,WhatDoYouThink?DoestheCPIaccuratelyreflectthecostoflivingforretirees?IsitappropriatetousetheCPIasacost-of-livingindexforothergovernmentprograms,forprivateunionpensions,andforotherprivatewageagreements?,Lecture3,Slide111,Cost-of-LivingIndexes,ExampleTwosisters,RachelandSarah,haveidenticalpreferences.Sarah