Comparison of a contemporary public finance textbook with one written in the 1940s indicates the following major changes in the field: microeconomic theory is now the framework for analyzing positive and normative issues; research is dominated by econometrics; and topical coverage has changed along with changes in public policy. (JOW)

Describes bargaining examples that use expected utility theory. Provides example results that are intuitive, shown graphically and algebraically, and offer upper-level student samples that illustrate the usefulness of the expected utility theory. (JEH)

Describes and contrasts nonlinear and linear pricing in consumer choice theory. Discusses the types of nonlinear pricing: block-declining tariff, two-part tariff, three-part tariff, and quality discounts or premia. States that understanding nonlinear pricing enhances student comprehension of consumer choice theory. Suggests teaching the concept in…

Examines key public members' perceptions of the personal, professional, and community relationships they have with a bank and relates those perceptions to evaluations of satisfaction. Finds members' perceptions of their personal and professional relationships significantly influence evaluations of overall satisfaction. Discusses implications for…

Fifty years ago what was taught in the principles of economics course reflected reasonably well what economists did in their research. That, however, is no longer the case; today what economists teach has a more nuanced relation to what they do. The reason is that the economics profession and the textbooks have evolved differently. The author…

The author describes a classroom game demonstrating the process of adjustment to long-run equilibrium in a market consisting of price-taking firms. This game unites and extends key insights from several simpler games in a framework more consistent with the standard textbook model of a competitive industry. Because firms have increasing marginal…

Many introductory microeconomics textbook authors derive the law of demand from the assumption of diminishing marginal utility. Authors of intermediate and graduate textbooks derive demand from diminishing marginal rate of substitution and ordinal preferences. These approaches are not interchangeable; diminishing marginal utility for all goods is…

States that short-run production theory and U-shaped cost curves do not conform to industrial reality. Explores in detail the reality of manufacturing stating that fixed proportions seem more suited to describing short-run manufacturing processes. Addresses fixed proportions in short-run production and short-run cost functions. Includes…

This classroom exercise illustrates the Tiebout (1956) hypothesis that residential sorting across multiple jurisdictions leads to a more efficient allocation of local public goods. The exercise places students with heterogeneous preferences over a public good into a single classroom community. A simple voting mechanism determines the level of…

Instructors can use a computerized experiment to introduce students to imperfect competition in courses on introductory economics, industrial organization, game theory, and strategy and management. In addition to introducing students to strategic thinking in general, the experiment serves to demonstrate that profits of a firm fall as the number of…

Describes a pit-market experiment using the work of Charles A. Holt to illustrate to students the real world relevance of the competitive equilibrium concept. Explains how to set up and conduct a pit-market experiment, discusses features of the data, and provides accompanying materials. (JEH)

Addresses issues related to the ways in which the Internet is affecting supply and demand, competition, property rights, information costs, and economies of scale. Suggests ways to incorporate these topics into the study of microeconomics. (Contains 19 references.) (SK)

Notes that using spreadsheets to teach microeconomics principles enables learning by doing in the exploration of basic concepts. Introduction of increasingly complex topics leads to exploration of theory and managerial decision making. (SK)

Observes that the envelope theorem, a fundamental tool in duality analysis, is still a puzzle to many people. Argues that the essence of a solution proposed by Paul Samuelson (1947) is also unclear to many people, but can be communicated with a simple cost diagram. Presents and explains the proposed diagram. (DSK)

Updates a study of the coverage of entrepreneurship contained in principles of economics textbooks originally carried out in the mid-1980s. Analyzes coverage of the same topics in 14 popular introductory texts. Concludes that entrepreneurship still has not worked its way into economics-principles texts. (DSK)