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MICROECONOMICS AND BEHAVIOR
MICROECONOMICS AND BEHAVIOR
Seventh Edition ROBERT H. FRANK
Cornell University
Boston Burr Ridge, IL Dubuque, IA New York San Francisco St. Louis Bangkok Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto
MICROECONOMICS AND BEHAVIOR Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2008, 2006, 2003, 2000, 1997, 1994, 1991 by The McGraw-Hill Companies, Inc. All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 0 WCK/WCK 0 9 8 7 ISBN 978-0-07-337573-1 MHID 0-07-337573-X Editorial director: Brent Gordon Executive editor: Douglas Reiner Developmental Editor: Angela Cimarolli Senior marketing manager: Melissa Larmon Project manager: Jim Labeots Production supervisor: Gina Hangos Lead designer: Matthew Baldwin Photo research coordinator: Lori Kramer Senior media project manager: Susan Lombardi Cover design: Artemio Ortiz Jr. Interior design: David Seidler Typeface: 10/12 Sabon Roman Compositor: Aptara, Inc. Printer: Quebecor World Versailles Inc. Library of Congress Cataloging-in-Publication Data
Frank, Robert H. Microeconomics and behavior / Robert H. Frank. — 7th ed. p. cm. Includes index. ISBN-13: 978-0-07-337573-1 (alk. paper) ISBN-10: 0-07-337573-X (alk. paper) 1. Microeconomics. 2. Economic man. 3. Self-interest. 4. Consumer behavior. I. Title. HB171.5.F733 2008 338.5—dc22...