WEEK 7 = Social Context
Efficiency wages: punishment
New home economics
Social production function theory
Principals and agents goals are not the same.
Principal cant observe agent directly
Alternative Representations of Oligopolistic Behaviour
Firms maximise profits
Firms produce homogenous product
All cost functions are known to all firms
Each firm treats the output level of competitor as fixed when decidin
Chapter 5: Uncertainty and Consumer Behaviour
5.1 Describing risk
Describing risk quantitatively: listing all possible outcomes of a particular action or event, as
well as the likelihood that each outcome will occur.