Errata remaining
p120, second to last line of the proof. Add reference to Shephard's lemma to make proof clearer.
Fixed for printing 9
p10, 6 up. Probably want x_{1}^{a} x_{2}^{1a} ³ y. (Anthony J.F. Biagioli)
p97. ``marginal rate of substitution'' should be an index entry, not visible.
p166, 3 lines up. Reverse the integration bounds. (Thijs ten Raa)
Fixed for printing 8
A7, journal date for nonparametric production should be May 1984. (fixed)
38, journal date for nonparametric production should be May 1984. (fixed)
114, (and A17) answer to 7.5b should be u(1), not u(1)1. (Juan Manuel Dubra) (fixed)
181, bottom of page. Replace w with e. (Prasanta Mahapatra) (fixed)
208, 3rd,4th, and 6th displayed equation. logs missing before two terms. (Andrea Bugin) (fixed)
407, 2nd line of proof, the last term should be x_{i}, not x_{i}¢. (Tuomo Pentikainen) (fixed)
450, line 11. Should have u_{2} rather than u_{b}. (Frank Vandenbroucke)
463, line 12. ``reducing'' should be ``increasing.'' (Frank Vandenbroucke)
Fixed for printing 7
219, 8 lines up. ``prices'' should be ``price''. (Juan Nagel)
257, 14.22. Fix punctuation in equation. (Dave Malueg)
295, 3rd displayed equation. Move period up from denominator. (Robert Frank)
297, below equation (16.10). Second ``inequality'' should be ``equality''. (Robert Frank)
356, Fix Samuelson51, Weizsäcker. On page A7 use lower case ``von''. (Robert Frank)
399, 2nd equation. Last term should have p(t). (Robert Frank)
402, 2nd eqution. Replace ¶p_{j}/¶t with dp_{j}/dt. (Robert Frank).
462, 6 down. Replace ``low cost'' with ``highcost''. (Robert Frank)
Fixed for printing 5
Chapter 1
9, second theorem. Should have f(x). (Stephen Siklos)
Chapter 3
47, last displayed equation. Last term should have an S subscript. p_{S}. Also would be better to put S and L subscripts on the net supply functions. (Stephen Siklos)
Chapter 4
51, 5 up. Add more lines to figure. (LouisPaul LECLAIR)
61, line 1. ``maximum'' should be ``optimum''.
Chapter 5
78, problem 5.9. Answer should be p¢(a) = n[y + ap/c¢¢]/[D¢(p)  n a/c¢¢] < 0. (Hal Varian)
Chapter 6
83, 5 up. Should say c(w,y).
Chapter 7
106, 3 lines down in 2nd paragraph. Missing ``that'' before ``the''. (LouisPaul LECLAIR)
114, 7.1, 2 lines down. Probably use ``if'' rather than ``iff''. (LouisPaul LECLAIR)
Chapter 8
132, 18 down. ``the'' instead of ``that''. (LouisPaul LECLAIR)
Chapter 9
144, 3 lines after 9.1. ``in'' should be ``is''. (Susanne Trimbath)
149, after calculation: should be capital V and capital U.
Chapter 10
162, 19 up. ``function'' should be plural twice. (LouisPaul LECLAIR)
162, 19 down. Should be ``how can we''. (LouisPaul LECLAIR)
168, 6 up. Replace 1 with a prime. (Jianmao Wang)
170, 6 up and 9 up. The definitions of m^{+} and m^{} should be interchanged.
Chapter 12
207, 10 up. Should be b_{1} =  b_{2}.
Chapter 13
222, 5 down. Should be Chapter 10.
Chapter 14
234, 9 down. D(p) ³ y.
238, 14 down. Eliminate max.
Chapter 15
268, 13 up. ``left'' should be ``top'', ``right'' should be ``bottom''.
Chapter 17
330, 11 up. Should say ``KuhnTucker multipliers''.
Chapter 18
348349, last line, first line. The X^{g} terms should not be bold.
Chapter 19
362, 5 down. Should say ``discounted marginal indirect utility''. p 365, middle of page. 2n agents are alive at any point after the first period.
363, 15 up. Replace t with T.
Chapter 20
372, 9 up. x_{i} should be x_{a}.
379, 14 down. Should say ``marginal utility''.
Chapter 22
410, 12 down. Change x to bold x.
412, 9 down. Replace j with i.
Chapter 23
417, Table 23.2. Should be Table 23.1. Change ``Player'' to ``Consumer''. (Susanne Trimbath)
428, 12 down. Change sign of sidepayment in first two displayed equation.s (David Bradford)
Chapter 25
443, displayed equation in middle of page should be

Chapter 27
500. It is necessary to assume that b_{1} ¹ 0. (See p. 391 of Blume and Simon.) (Stephen Siklos)
Fixed for printing 4
Chapter 1
89, last line. ``and another vector x¢ also produces y units of'' is repeated. (Erik Gartzke)
9, 8 up. ``But a function ...'' (Gerhard Sorger)
Chapter 2
27, Fig 2.1. Should have 0 output at 0 input. (Carlos Carranza)
28, last sentence. ``are'' should be ``is'' (Paquita Davis)
29, 16 up. Should say p £ w. (Gerhard Sorger)
32, 12 up. Parenthesis missing in 2nd order condition. (Gerhard Sorger)
32, 5 up. Replace ``strict'' with ``regular''. (Gerhard Sorger)
33, 5 up. Replace ``strict'' with ``regular''. (Gerhard Sorger)
Chapter 3
44, 5 up. Equality sign missing. (Gerhard Sorger)
47, 3 up. Last term should have subscript S: p_{S}(p^{*},z^{*}). (Sebastian Maurice)
Chapter 4
60, last line. Replace ``strict'' with ``regular''. (Gerhard Sorger)
61, 2nd display formula. Probably want to say ``for all t,s such that''
Chapter 5
66, line 11. Replace x by x_{1}. (Gerhard Sorger)
69, last line of 1st full paragraph. Should say ``... average variable cost curve.'' (Gerhard Sorger)
69, first line of 2nd full paragraph. Should say ``... average variable cost ...'' Second line should say ``marginal cost.'' (Gerhard Sorger)
73, Fig 5.4. The w_{i}in the summation should be w_{i}^{*}. (Michael Hanson)
74, Replace ``condition'' by ``conditional''. (Gerhard Sorger)
74, 9 up. Replace w_{i} by w_{i}^{*}. (Gerhard Sorger)
75, 9 down. g(x_{1},x_{2},a). (Gerhard Sorger)
76, line 3 of section 5.6. Replace ``demand and supply'' with ``conditional factor demand''. (Emons Winand)
76, last line. The w_{i} in second term should not be bold. (Marco Ottaviani)
77, 3 down. Make w into w. (Gerhard Sorger)
78, Exercise 5.10. Replace ``price'' by ``prices''. (Gerhard Sorger)
79, answer to 5.10. There should be a minus sign before the last summation. (Timothy L. Sorenson)
Chapter 6
81, last sentence. ``trival'' should be ``trivial'' (Paquita Davis)
86, line 4. Section 2.4 should be section 5.6. (Marco Ottaviani)
89, Figure 6.2. In order to match the discussion in the text, we should have a sharply curved isoquant and a relatively flat isocost curve. (Marco Ottaviani)
90, 2 lines above Example. ``the'' is missing before cost. (Paquita Davis)
91, Figure 6.4. Eliminate kink in 1st isoquant.
Chapter 7
97, first line. Should say ``strictly convex preferences.''
97, 7 from bottom. Should use x_{k}, not x_{n}. (Lars Otto)
99, line 3. Give exact page number for strict convexity. (Lars Otto)
1045, last line on 104=first line on 105. (Christopher Voisey)
105, last line. u(x) (Gerhard Sorger)
107, 2nd and 3rd formulas. p should be p^{*}. (Bert Schoonbeek)
109. Figure 7.5. Should have m(p,x)/p_{2} on vertical axis. (Jennifer Novak)
109, Figure 7.6. Should have m(p,q,m)/p_{2} on vertical axis. (Jennifer Novak)
Chapter 8
116, 3 down. ``changes'' should be ``change''. (Paquita Davis)
118. Figure 8.2 Redraw figure to make backward bending offer curve more extreme. (Eric Rasmussen)
123, line 7. Middle two terms should switch p_{i} and p_{j} in the denominators. (Marco Ottaviani)
126, 3 up. Should have u^{0}. (Paquita Davis)
132, line 1. ``patters'' should be ``patterns''.
Chapter 9
146, 3rd displayed equation. [[`L]  l] should be [[`L] L]. (Michael Carter)
149, 4 up from ``The two good model.'' Should have V instead of v. (Lars Otto)
149, last line. ``timed'' should be ``times''. (Marco Ottaviani)
150, Functional separability. Should use different notation for subutility, since v has been used for indirect utility. (Lars Otto).
155, first equation. Add ``for i = 1,¼,k.''
156, ``inequalities'' should be ``equations'' (Paquita Davis)
156, 2nd formula. n in summation should be k. (Bert Schoonbeek)
157, Notes. Pollak69 should be Pollak (1969). (Hal Varian)
158, 10 down. ``What is the associated ...'' (Gerhard Sorger)
Chapter 10
162, 10 lines from bottom. Reword this sentence for clarity. (Gerhard Sorger)
163, Figure 10.1. Should indicate that p_{2} = 1 in this diagram. (Lars Otto)
165, 5 up and 1 up. p should be p_{1}. (Gerhard Sorger)
166, last line. add ``plus income.'' (Steven Buccola) OK
169, 12 up. ``the indirect utility function''
169, halfway down. Note transition to considering only a single price.
170, between 16 down and 4 up, replace x with x and x_{0} with x_{0}. (Gerhard Sorger)
173, line 3. = should be ~ . (Bert Schoonbeek)
182, probably want to say ``nondegenerate'' random variable. (Andras Simonovits)
188, 11.11. Should be E[R\tilde]_{i}. (Gerhard Sorger)
Chapter 12
202, line 16. Should be m(p,x,b). (Gerhard Sorger)
202, line 13. Should say ``hypothesize''. (Karen Eggleston)
205, 12.7. p/q should be p_{i}/q_{i}. (Gerhard Sorger)
205, 6 up. Eliminate ``the''. (Gerhard Sorger)
212, lnz should be lnz_{i}. (Gerhard Sorger)
Chapter 13
218, 15 down. y_{1} should be y. (Bert Schoonbeek)
222, 2 up. Maximize over y also. (Bert Schoonbeek)
223, Figure caption. Should say ``equilibrium quantity''. (B.R. Dijkstra)
224, 15 down. Should be ``multiple consumers''. (Gerhard Sorger)
224, 6 up. Last summation should have m as upper limit. (Richard Sperling)
226, 3 down. Should be [`u]_{2}. (Gerhard Sorger)
232, 6 down. Should say ``Let y denote''. (Gerhard Sorger)
Chapter 14
240, 8 up. Replace x and q by x_{m} and q_{m}. (Gerhard Sorger)
246, 2 lines up from (14.15). Should have u_{2}¢(x) > u_{1}¢(x). (Wes Wilson)
255, 3 up. Say ``taxing one of''. (Gerhard Sorger)
256, 14.18. Should tell students to ignore budget constraint. (Art Denzau)
261 etc., Be consistent about ``prisoner's'' or ``prisoners''' dilemma! (Ted Bergstrom)
270, 9 up. Lower limit should be t = 0. (Bert Schoonbeek)
Chapter 16
286, 3rd formula. p should p_{i}. (Bert Schoonbeek)
286, 14 down. c_{2}¢(y_{2}). (Gerhard Sorger)
289, 6 up and 10 up. Should have ¶^{2}. (Bert Schoonbeek)
292, line 9. Replace p_{1} by c_{2}. (Bert Schoonbeek)
295, 5 down. Should say ``substitute Greek for Roman'' (Sebastian Maurice)
296, 18 down. ``yield constant''. (Gerhard Sorger)
298, 8 down. Replace ``model'' with ``firm''. (Gerhard Sorger)
298, 12 up. A parenthesis is missing in formula. (Gerhard Sorger)
298, 3rd formula. Should have g_{2}(p_{1}). (Bert Schoonbeek)
299, 3 up. c¢ should be c_{1}¢. (Bert Schoonbeek)
301, 7 up. ``that'' should be ``than''. (Bert Schoonbeek)
301, 23. Remove ``each firm''. (Karen Eggleston)
304, 2 down. ``less'' should be ``more''. (Bert Schoonbeek)
304, 20 ``will not produce at its quota'' (Gerhard Sorger)
304, 5 up. Replace p_{2} by y_{2} in formula. Probably replace y_{1} and y_{2} by y_{1}^{*} and y_{2}^{*}. (Gerhard Sorger)
306, 3 down. firm 2 should be firm 1. (Bert Schoonbeek)
309, 7 up. Replace 2 by 3. (Gerhard Sorger)
309, 17 up. Replace ``incumbent'' by ``entrant''. (Roland Schroeder)
310, 16. Replace Sing84 by Singe and Vives (1984). (Hal Varian)
311, 16.11, line 4. Make k = c to agree with answer. (Hal Varian)
Chapter 17
317, 2 up. Change = to º . (Karen Eggleston)
330, max problem. Should say max_{xig,xjg} u_{i}(x_{i}) Do not use i as summation index in constraint. (Gerhard Sorger)
330, line 5, x_{i}^{g} should not be bold. (Buccola)
331, 2nd formula and line below 3rd formula, p should p^{*}. (Bert Schoonbeek)
331, 4th formula. Put stars on p's in fraction. (Bert Schoonbeek)
332, max problem. Upper limit of sum should be n, not k. (Gerhard Sorger)
334, 2nd line of proof. Should be ``exist''. (Gerhard Sorger)
334, line 2. Replace ``that'' by ``the''. (Karen Eggleston)
337, 10 down. Should say ``quasilinear utility functions, so that v_{i}(p,m_{i}) = v_{i}(p) + m_{i}.'' (Sam Bucovetsky)
337, 17.7 3rd line. p^{*}, not p_{*}. (Gerhard Sorger)
337, 7 up. p ³ 0. (Gerhard Sorger)
338, 9 up. n should be k (twice). (Bert Schoonbeek)
339, line 1. ``1'' should be ``2''. (Karen Eggleston)
340, 1st line of section. ``aggregate net supply function'' (Karen Eggleson)
343, 5. Make ``conventions'' singular. (Karen Eggleston)
344, 9 up. Eliminate comma from \succ_{i}. (Gerhard Sorger)
344, statement of theorem. Probably want Y and Y_{j}, not bold. (Gerhard Sorger)
346, line 9 and 13. Probably want Y_{j}. (Gerhard Sorger)
347, last formula. j1 should be j = 1. (Bert Schoonbeek)
346, item (2). Don't need to repeat y_{j}¢ is in Y_{j}. (Marco Ottaviani)
348, line 1. Interchange y¢ and y^{*}. (Marco Ottaviani)
348, 4 up. T should not be bold.
355, 10 down. ``maximum ratio'' not ``maximum difference''
Chapter 19
363, 2nd line after equations. 1a should be 1+a.
363, middle of page. ``following'' should be ``preceeding'' (Karen Eggleston)
364, 19 down. Replace ``agent t'' with ``the agent''.
366, line 11. Sentence should say: ``... market in these contracts, and that at any price ...''
Chapter 20
373, equation for m. Minus sign missing on RHS. (Marco Ottaviani)
374, [`R]_{f} should be replaced by R_{0}. (Marco Ottaviani)
376, 19 down. b_{0a}
378, 1st section, line 2. ``is'' should be ``are'' (Karen Eggleston)
379, 1st equation. Right paren missing.
Chapter 21
391, figure 21.2. x should be x^{*}. (Bert Schoonbeek)
393, Figure 21.3. Consumers should be A and B, not 1 and 2. Demands should have * and ¢, not bar and tilde. (Marco Ottaviani)
394, 2nd paragraph of 21.3, line 6. Delete comma. (Karen Eggleson)
395, definition of gross substitutes. Want strict inequality. (Bert Schoonbeek)
397, 4 down. Say ``of the excess supply function, Dz(p).
397, 10 up. Replace n by k. (Buccola)
399, 1 sentence up. Eliminate ``using the definition of excess demand'' since it isn't used until the next step. (Marco Ottaviani)
399, line 15. Use strict inequality. (Bert Schoonbeek)
399, paragraph starting with Debreu. ``the utility'' and ``any dynamical''. (Karen Eggleston)
400, line 34. Say ``satisfied by any ...''. (Marco Ottaviani)
400, 5 from bottom. Dot is missing over p. (Marco Ottaviani)
401, line 2. The last p^{*} should be p_{i}^{*}. (Marco Ottaviani)
Chapter 22
405, 18 down. x should be x¢.
411, 11 up and 9 up. Should have = 0.
412, 7 up. Replace 1/q by q.
416, 14 from bottom. Should be ``exceed'' not ``exceeds''.
419, 5 up from example. Should say ``public good''.
424, before 1st displayed equation. Should say ``is given by''.
427, 3 up. Delete ``payments''.
427, item (3). ``the sum''. (Karen Eggleson)
429, 8 up. Delete comma. (Karen Eggleson)
431, 1st line. Delete comma. (Karen Eggleson)
Chapter 24
436, line 12. Should say ``examination of the proof of the theorem.''
437, 24.4. Should be 2(t_{2}  t_{1}).
Chapter 25
443, 25.2. Should say c(a).
444, 1st line of 3rd paragraph. There is an extra ``the'' here. (Marco Ottaviani)
446, 4 lines after 25.5. Should say ``both participants''.
455, 7 lines above example. Should say ``If the zero ...''
456, 1st line after equations. Replace ``accident'' with ``theft''.
459, 2 down. Should say ``pay A+D if output is'' (John Fingleton)
461, 9 down. Last term should be c_{2}(x_{1}).
462, 1st paragraph. Should say ``The lowcost agent produces where its marginal benefit equals marginal cost; the low cost agent produces at a point where its marginal benefit exceed its marginal cost.'' (Karen Eggleston)
462, 6 lines after figure. ``agents'' should be ``agent's''.
463, line 11. ``high'' should be ``low''. (Karen Eggleston)
463, last line. Replace ``one one'' by ``only one''.
464, 3 lines after (c). Should be ``different''.
467, 8 lines below caption. (s_{1}¢,s_{2}¢) should be (s_{1}¢,x_{1}¢).
468, 1 line from bottom. Comma should be period. (Also sentence is poorly worded.)
Chapter 26
474, line 5. Should say ``some t_{i}''.
474, line 9. Make x bold.
475, line 17. mbyn.
479, line 2. f should be boldface.
479, 4 and 5 up. D^{2}f rather than D^{2}.
481, 12 up. t^{k} f(x)
481, 1 up. Replace ¶tx_{i} by ¶x_{i}.
482, 4 down. Replace ¶tx_{i} by ¶x_{i}.
482, 14 down. Replace ``properties'' by ``functions''.
483, 5 up. The ¶ sign is missing in the middle two terms.
485, line 20. Replace x by x.
485, 9 up. Replace [(x)\dot] by f(x).
Chapter 27
489, line 2. Replace x^{2} with x^{4}. (Eric Rasmussen)
489, Figure 27.1. Replace ``changes'' with ``grows'' in the figure caption twice. (Ahmet Akyol)
494, line 8. Replace H by H.
495, line 6. ``is a''
496, line 6. ``is at least''
496, bottom of first section. Should use x^{4}. (Jinku Lee)
497, center equation and last equation. Probably want g(x). (Jinku Lee)
498, bottom of page. Should have 1/l in front of ¶f(x)/¶x_{i}. (Marco Ottaviani)
Appendix
Problem 3.4 in Answers manual: The second factor is omitted from the first order conditions, should be

A9, 1.7. Right parenthesis missing in first equation. (Marco Ottaviani)
A9, 5 up. Delete ``that shows''.
A22, 9.7, line 2. Should be z_{2}, not z_{1}.
A27, 13.5c. Should have y^{*} on RHS.
A28, 10. RHS should be [(¶p(x,q))/( ¶q)] x.
A29, 14.17c. Replace [(d x_{1})/( d t_{1})] by [(dx_{1})/( dt_{1})]dt_{1} and same for t_{2}. In last line of answer probably want dt_{2} rather than t_{2}.
A30, 14.23b, 3rd line and 14.23d, 4th line. Should be (2p)^{2}/2, which makes the answer in 14.23d p = 2(c+2)/3. (Wes Wilson)
A31, 16.11. c should be k (3 times).
A33, 22.1. Omit equation number. Last paragraph should say ``of this expression is nonpositive (and typically negative)''.
A35, line 6. Should be u¢(s).
A35, 25.5. Last displayed equation should have s_{i} p_{ia}.
Fixed for printing 2
Preface
xiii. delete ``is'' in last line of second paragraph. (Barbara Harrow) OK
xv. ``Mauleg'' should be ``Malueg.'' (David Malueg) OK
Chapter 1
4. 3rd line of ``Transformation function.'' Add the requirement that y¢ ¹ y. (David Malueg) OK
5. Figure labels A and B omitted. (Richard Woodward) OK
6, 2nd display equation. Should be

8. Figure 1.4. Replace ``production'' by ``input requirement.'' (David Malueg) OK
14, 4th equation. Write x_{2}/x_{1} rather than x_{1}/x_{2}. (Tevfik Aksoy) OK
15, third paragraph from bottom. Replace ``simply'' with ``simple.'' (David Malueg) OK
20. Part (3) of the proof. The numerator and denominator of the fraction got reversed. It should say

22. Problem 1.11d. The inequality should be reversed. (Richard Woodward) OK
Chapter 2
32. 5 from bottom. Remove ``... that we have a strict maximum, so that...'' (Ken Binmore) OK
Chapter 3
42, line 5. ``important'' is repeated twice. (John Miller) OK
44, 3rd equation on page. Use identity sign instead of equality. (John Miller) OK
45. 5 lines from bottom. ``appendix'' should be ``Chapter 27.'' (Richard Woodward) OK
46, 5 from bottom. Should be ¶^{2} p. (Carl Simon) OK
Chapter 4
59. last equation on page. The last column of the matrix in the numerator should be (0,1,0), with no bold zero. (Richard Woodward) OK
62. Space missing in definition of VO. (Carl Simon) OK
63 (A14). Answer to problem 4.5 should have a_{1}w_{1} + a_{2}w_{2} in first line and third line. OK
Chapter 5
71. Figure 5.2. Should have AC(y^{*},z^{*}) on vertical axis. (Gustavo Angeles) OK
73. Figure 5.4 is typeset poorly. (Richard Woodward) OK
78. Problem 5.5. Should ask for conditional factor demand. (Ken Binmore) OK
78 (A15). First line should have c(w_{1},w_{2},y) = min{w_{1},w_{2}}y. (Francisco Armando da Costa) OK
79, exercise 5.12. Omit ``an.'' (David Malueg) OK
79, exercise 5.15. Should have {(x_{1},x_{2},x_{3}): ¼ Marcos Gallacher. OK
Chapter 6
87, 4th display equation. Put period in right place. (David Malueg) OK
91. Figures 6.36.6 should have w_{1}/w_{2} on vertical axis rather than w_{2}/w_{1}. Figure 6.4a and 6.6a should show the slope as w_{1}^{*}/w_{2}^{*}. (Francisco Armando da Costa) OK
Chapter 7
97, 5 lines from bottom. Delete ``marginal rate of substitution.'' (Tevfik Aksoy) OK
101, 5 from bottom: should have ¶^{2} u(x) (Kevin Jackson) OK
104, caption to Figure 7.2. Eliminate )) on second line. (Kevin Jackson) OK
104, caption to Figure 7.3. ``increase'' should be ``increases.'' (Kevin Jackson) OK
105, line 4. Replace 1,¼,n by 1,¼,k. Also, immediately following this, ``page 71'' should be ``page 72.'' (Zhiqi Chen) OK
106, Roy's identity. i = 1,¼,n should be i = 1,¼,k. (V A Noronha) OK
108, equations (7.8) and (7.9). Upper limit should be k, not n. (V A Noronha) OK
109. Should probably say ``... strictly increasing for continuous, locally nonsatiated preferences ...'' (George Mailath) OK
112. Example. The suggested transformation is only valid if r is positive. This paragraph should probably be removed. (Soren Blomqvist) OK
114. Question 7.3. Ask for a quasiconcave utility function. Otherwise there are many other answers. (Gustavo Angeles.) OK
114. Question 7.5. Normalize p_{2} = 1. In answer to 7.5c (page A17) should replace y by m. (Gustavo Angeles) OK
115. Question 7.6. One line from bottom. (A( should be A(. (Gustavo Angeles) OK
Chapter 8
120, last expression on page. Should be ¶x_{1}(p,m)/¶m (Mark Burkey) OK
123. Extra ``)'' in each of last two equations. (Gustavo Angeles) OK
123, 3rd line of middle paragraph. Should say ``allows us'' (Kevin Jackson) OK
126. Missing ``)'' in last equation. (Gustavo Angeles) OK
131. Third equation. Denominator should have x_{2} rather than x_{1}. (Richard Woodward) OK
132, line 14. Should have boldface x. (Carl Simon) OK
132, line 12 from bottom. Should have boldface x. (Carl Simon) OK
134, 3rd display equation. p should be p^{s}. (Attila Ratfai) OK
142, question 8.15. Should say ``supply function of labor.'' Answer on A20 should say ``if leisure is inferior''. (Tevfik Aksoy) OK
143, second line from bottom. The word ``on'' is repeated twice. (Tevfik Aksoy) OK
Chapter 9
145. Displayed equations. Should have bold omegas in both equations. (Martin Osborne) Should probably use p_{j} and w_{j} subscripts in first displayed equation. (Sjur Flam) OK
149, 2nd displayed equation. Should have capital V's. (Ken Binmore) OK
157, Notes. Reference Bob Pollak with respect to conditional demand functions. OK
Chapter 10
162, middle of page. Chapter 9 should be chapter 8. OK
163, line 6 of 10.2. p^{1} should be p¢. (Alessandro Balestrino) OK
164, 3 lines from bottom. v_{1}(p_{1}) should be v(p_{1}). (Sjur Flam) OK
165, 5 lines from bottom. Omit subscript on u(x_{1}) (Sjur Flam) OK
166, 6 lines from bottom. Should be m(q;q,m). (Sjur Flam) OK
168, paragraph before section 10.6. The case depicted has p^{0} > p_{1}, so all the areas are positive. The inequalities in the last sentence should be reversed. (Gustavo Angeles) OK
Chapter 11
174, assumption U1. Probably want [0,1] rather than [0;1]. Also, on top of page 175. (Gustavo Angeles) OK
177, section 11.5, second paragraph, line 3. ``greater'' should be ``less.'' (Roy H. M. Sembel) OK
181, 8 from bottom. Should say that p_{A}(e) is called the risk premium. (Jan Rutkowski) OK
183. 1st equation. Should be

185, paragraph before ``Risk Aversion''. ``size'' should be ``side.'' (Kevin Jackson) OK
186, 9 from bottom. Should be (1+h)^{2} s^{2}. (Ken Binmore) OK
188, section 11.7, line 1. ``he'' should be ``she'' (Kevin Jackson) OK
189 Second equation should be [`w]  b[`w]^{2}  bs_{w}^{2}. (Francisco Armando da Costa) OK
189, 4 lines from bottom. u(x) should be u(w). (Gustavo Angeles) OK
189, last line. Expression in brackets is the negative of the correct expression and r^{2} should be r. (Gustavo Angeles) OK
193, 2nd and 3rd display equations. The term multiplying u(0) should be .01, not 1. (Hal Varian) OK
194, line 4. Replace = with > . (Attila Ratfai) OK
196, exercise 11.11. Utility function should be 1/w. (Zhiqi Chen) OK
Chapter 12
201, 2 lines above 12.5. Sum should equal 0. (Alessandro Balestrino)
209, last display equation. Should be w_{j}/w_{i}. (Attila Ratfai) OK
Chapter 13
224, 3 from bottom. upper limit on last sum should be m, not n. (Carl Simon) OK
225, last line. Take subscript off [`u]_{2}. (Mariusz Shatba) OK
230, 13.3a. Should not have boldfaced w's. (Carl Simon) OK
Chapter 14
234, 9 from top. Probably want y = D(p). (Bo Li) OK
237, 1 up from bottom. ``elastic'' should be ``inelastic.'' (Ken Binmore) OK
240, 11 up. Remove first ``of.'' (Attila Ratfai) OK
240. last sentence: ``be not'' should be ``not.'' (Roy H. M. Sembel) OK
247, 14.18. Should have brackets around the last two terms. (Alessandro Balestrino)
248, Figure 14.3. The x_{1}'s should be x_{l}'s. (Ken Binmore) OK
252. Figure 14.5. Swap labels for (p_{1},x_{1}) and (p_{2},x_{2}) to be consistent with explanation in text. (Roy H. M. Sembel) OK
255, problem 14.15. Same as problem 14.21. (Yi Jiang) Answer should be


257, problem 14.21. See page 255. (Yi Jiang) OK
261, line 3 from top, line 2 from bottom. Tables should be referenced directly. (Carl Simon) OK
Chapter 15
271, paragraph 2. 3/r should be 3+3/r. The condition then becomes 3+3/r > 4 + 1/r, which reduces to r < 2. (Bo Li) OK
272, section 15.8, 3rd line of 3rd paragraph. ``belief'' should be ``believe'' (Yhong Zhu) OK
272, 3rd line from bottom: eliminate one of the doubled ``are'' (Yhong Zhu) OK
274, line 3. Table 15.5 should be referred to directly. (Carl Simon) OK
276, 3 from bottom. Should say "B either accepts or comes back with a counteroffer." (Carl Simon)
278, Figure 15.3. Change axes labels to u_{A} and u_{B}. (Yhong Zhu) OK
280, 8 lines from bottom. ``lowest'' should be ``higher.'' (V A Noronha) OK
282. Dasgupta mispelled here and on page A2. (V A Noronha) OK
283. (A30) Answer to problem 15.5 should be: Part (a): a ³ e, c ³ g, b ³ d, f ³ h. Part (b): a ³ e, b ³ d. (Francisco Armando da Costa) OK
283, 15.8. Middle strategy should have label ``Middle''. (David Malueg) OK
Chapter 16
286, 5 from bottom. Should be f_{1}¢(y_{2}). (Sjur Flam) OK
287, Stability of the system, line 5. ``it'' should be ``its''. (Lea Verdin Carty) OK
291, 1st equation. W(Y) = [P(Y)  should be W(Y) = [P(Y)Y  . (Bo Li) OK
295, 3rd equation. b_{2} should be b_{1}. (Bo Li) OK
297, A1. Should say ``strictly decreasing.'' In theorem should say ``(weakly) prefers.'' (Giacomo Costa) OK
298, line 2. Last inequality should be a weak inequality. (Giacomo Costa) OK
298, 12 from bottom. Should have g_{2}(p_{1}) in this expression. (Sjur Flam) OK
298, 4 from bottom. ``firm 2'' should be ``firm 1.'' (Bo Li) OK
300, last two paragraps. This argument is correct for the case where the two firms are identical, but the diagram depicts curves with different marginal costs. (Hal Varian) OK
305, last paragraph. Profit functions here should all have subscripts of 2, not 1. (Sjur Flam) OK
306. Should have [(p_{2}^{*})/( 1d)] (Yi Jiang) OK
310, Notes. Add reference to Singh and Vives (1984), ``Price and Quality Competition in a Differentiated Duopoply,'' Rand Journal of Economics, 15: 546554. OK
311, 16.7. Should be y_{1} > y_{2}. (Bo Li) OK
Chapter 17
317, Figure 17.2. Switch the labels on consumer 1 and consumer 2's offer curves. (Coenraad Vrolijk) OK
317, Walras' law. Remove ``in S^{k1}'' since the notation isn't introduced until the next page. (Hal Varian) OK
318, top line. Should say ``aggregate excess demand.'' (Hal Varian) OK
318, line 4. x_{i} should be in boldface since it is a vector. (Hal Varian) OK
319, line 2. The zero in the statement of the proposition should be boldface. (Hal Varian) OK
322, first 2 lines of examples. (x^{1}_{1})^{a}_{1} should be (x^{1}_{1})^{a} and (x^{1}_{2})^{b}_{1} should be (x^{1}_{2})^{b}. (Tevik Aksoy) OK
322, line 5 of example. m should be m_{1} (Gustavo Angeles) OK
326. 5 lines from bottom: should say ``... prefers to x^{*}_{i}.'' (Roy H. M. Sembel) OK
327, step 1. The zero should be boldface. (David Malueg) OK
334, equation in middle of page. The p should be p^{*}. (Marco Sandri) OK
336, Problem 17.1. x_{i}¢ = x_{i}^{*} should be in boldface. (Yong Zhu) OK
337. Problem 17.9. Answer given in book is for p_{2}/p_{1}. OK
337. Problem 17.11. Add endowments to statement of problem. OK
Chapter 18
339. 7 lines from bottom: n should be m. (Roy H. M. Sembel) OK
339. 7 from top. Should have boldfaced p. (Hal Varian) OK
344. Assumption 8. n should be m, i should be j. (Roy H. M. Sembel) OK
344. Assumptions 79. Should be stated in terms of aggregate production set, not individual firms' production sets, to be consistent with Theory of Value. (John Kennan) OK
345, 3rd displayed equation. last summation index should be j not i. (Lea Verdin Carty) OK
346, item (2) in theorem. Should have py_{j}^{*}. (Tevfik Aksoy) OK
352, 6th displayed equation. Exponent is ugly. (Hal Varian) OK
353, 12 lines from bottom. W should be L. (Yong Zhu) OK
354, Nonsubstitution Theorem. Should say i = 1,¼,n. (Jon Hamilton) OK
356. Change Samuelson (1966) to reference original piece. OK
Chapter 19
361, equation 19.6. Should have E in front. (Yong Zhu) OK
361, 2nd equation from bottom. Should have w_{T2} on RHS, tilde over w_{T1} on LHS. (Yong Zhu) OK
362, equation 19.7. Should have tilde over R. In next paragraph 19.5 should be 19.6 and 19.6 should be 19.8. Equation 19.9 should have an E in front of it. In 19.10, should have same denominator as in 19.9. Put tilde over R in last two equations. (Yong Zhu) OK
363, 1st equation. Replace + by . (Karen Eggleston)
363, equations 19.11 and 19.12. Put expectation sign in 19.11 and put tilde over R's. (Yong Zhu) OK
366, line 8. Eliminate ``I.'' (Hal Varian) OK
Chapter 20
376, 3rd paragraph, 3rd line: b_{ai} should be b_{ia} (Yong Zhu) OK
380, 7 lines from bottom. ``price'' should be ``return.'' OK
382, second equation RHS. Should have tilde over p. (Yong Zhu) OK
384, 3rd paragraph. Should say that r_{s} ³ 0. (Hal Varian) OK
384, 3rd equation from bottom. Should separate the bar over Z and V_{a}. (Yong Zhu) OK
Chapter 22
413, 22.2. Replace n by k. (Carl Simon) OK
Chapter 23
416, line 3. w_{1} should be w_{2}. (Roy H. M. Sembel) OK
419. Second equation in (23.3), second term, should be ¶u_{2}/¶G. (Francisco Armando da Costa) OK
420. In equation 23.8 and following equation arguments of utility function should be (g_{1}+g_{2},x_{1}). (Francisco Armando da Costa) OK
421, Figure 23.1. One Panel A, g_{1} should be g_{1}+g_{2}. (Jon Hamilton) OK
423, lines 34. Inequalities should be reversed. (Francisco Armando da Costa) OK
423, line 7. Should have u_{2}¢(G) (Francisco Armando da Costa) OK
425, line 3. Should say ``... derivative of the average utility function ...'' (Francisco Armando da Costa) OK
426, 2nd diplay equation. Should have x_{2}^{*} as argument. (Carl Simon) OK
429. Change Samuelson to reference original article, not collected works. (Jon Hamilton) OK
Chapter 25
442, footnote. Should spell ``monopsony'' correctly. (Alessandro Balestrino)
443, 7 lines from bottom. Equation should be F = x(b^{*})  c(b^{*}) [`u]. (Frances Wooley) OK
452, 1st display equation. Lower limit on summation should be 1. (Carl Simon) OK
456, equations in middle of page. min should be max. (Bo Li) OK
458, 5 lines up from graph. Should say ``prefer (s_{2},x_{2}^{*}) to (s_{1},x_{1}^{*}). (Bo Li) OK
462, line 2: Should be 2c_{2}¢(x_{2}^{*}) = 1 +c_{1}¢(x_{2}^{*}). line 3: ``equal'' should be ``equals.'' (Frances Wooley) OK
463, line 6. ``highcost'' should be ``lowcost'' in this line. (Roy H. M. Sembel) OK
Chapter 26
474, 2 from bottom. Replace x with xx. Add ``of'' to figure caption. (Mariusz Shatba) OK
481. In homogeneous functions section it should be k = 0 and k = 1, not t = 0 and t = 1. (Michael Sandfort) OK
Chapter 27
487, footnote. ``that'' should be ``than.'' (Hal Varian) OK
494, last 2 equations. The righthand side of this equation should have minus signs in front of it. (Yong Zhu) OK
495, 6 lines down. ``Negative'' should be ``positive.'' (Yong Zhu) OK
495, 7 lines down. Omit ``negative of the.'' (Yong Zhu) OK
495. 2nd equation up. Omit both minus signs. (Yong Zhu) OK
495. 2nd equation of example. Should be u_{2}¢(x_{2}). (Gustavo Angeles) OK
496. Probably want to show that the partial derivatives are evaluated at (y_{1},y_{2}) in 3rd and 4th expression. (Yong Zhu) OK
501, last paragraph. This repeats the example given immediately above, and should be deleted. (Yong Zhu) OK
503, 2nd line after equation 27.8, g_{i}(x^{)} should be g_{i}(x^{*}). (Marco Sandri) OK
503, equation for G(x^{*}). Should be ``for all i such that g_{i}(x^{*}) = 0. Should reword previous sentence since B(x^{*}) is redundant with this definition. (Marco Sandri) OK
504. Should add multipliers to 27.9. (Yong Zhu) OK
504. The concluding paragraph of the proof is not correct as it stands. If the i^{th} constraint is not binding, l_{i} = 0. If the i^{th} constraint is binding ,then g_{i}(x^{*}) = 0, so g_{i}(x) £ g_{i}(x^{*}) = 0 and Dg_{i}(x^{*})(x x^{*}) £ 0. Applying these observations to equation (27.9) we see that f(x) £ f(x^{*}). (Jinku Lee)
505, 1st line of 2nd paragraph. ``problem'' should be ``problems.'' (Barbara Harrow) OK
References
A1. ``Extremal'' misspelled in first line. OK
A1A7 (Bibliography) Muellbauer, Geanakoplos, and Scheinkman are misspelled. Pareto and Paretian should be capitalized in the Debreu entries. (Kim Border) OK
A2. Blackorby reference. Last word should be ``Applications.'' (Martin Osborne) OK
Answers
A10. Answer to 1.11c is wrong. Second derivative should be

A12. The answer to 2.7.f should say, ``The derivative of profit with respect to w is w/210, which is, of course, the negative of the factor demand.'' (Tevfik Aksoy) OK
A15. First line on page. c(w_{1},w_{2},y) = min{w_{1},w_{2}}y. Fourth line on page: replace ``anything between 0 and y'' by ``either 0 or y.'' (Richard Woodward) OK
A15, 5.9b. Inequality should be reversed. (Yong Zhu) OK
A15, 5c. Answer should be p¢(a) = n[y + ap/c¢¢]/D¢(p) < 0. (Felix FitzRoy)
A15, 5.13b. Put minus signs in duality relations. The last inequality should be reversed. (Yong Zhu) OK
A17. Answer to 7.3. Budget constraint should have p_{1}x_{1} + p_{2} x_{2} = m. I also should say that the utility function is restricted to be quasiconcave. (Tevik Aksoy) OK
A20. 8.15. Answer should say that leisure is inferior good so the leisure demand is negative and labor supply is positive. (Yi Jiang) OK
A21, 9.1. Should have x_{j}(p)m rather than x_{j}(p,m). (Gustavo Angeles) OK
A24, 11.5a. At end of second line should have p, not p^{j}. (Yi Jiang) OK
A28. 14.11. Change ``never'' to ``always.'' (Ken Binmore) OK
A29. 14.17 Should have 2p_{2}¢+ p_{2}¢¢x_{2}  c_{2}¢¢ in denominator. (Yi Jiang) OK
A30. 15.5. See p. 283 above.
A31, 17.1. The x's in this answer should be boldface. (Yong Zhu) OK
A32. 17.9. Should have x^{2}_{3}/x^{1}_{3} = 5/10 = 1/2. Also, probably want to have bolface x^{*} in problem. (Duhamel Marc) OK
A32, 17.11c. Want to give endowments in statement of problem. (Yong Zhu) OK
A32. 18.1a. Total demand for labor should be 15N. (Tevfik Aksoy) OK
A32. 18.1a, 2nd line from bottom. Should have r ³ 0. (Yong Zhu) OK
A34, 24.1a, 2nd equation. u_{2}(x_{1},x_{2}) should be u_{2}(x_{2}). (Yong Zhu) OK
A40. There are two entries for nonlinear pricing, and two entries for quasilinear utility function that should be merged. (Martin Osborne)
Solutions manual
4.5. Should be a_{1} w_{1}. (David W. Crawford) OK
4.6. Should be 2 Öy. (David W. Crawford) OK
5.10. Should say ``... first equality ...'' (David W. Crawford) OK
5.12. Should probably be x_{i}(w,1)y. (David W. Crawford) OK
5.16b. Last line should have x_{2} rather than x. (David W. Crawford) OK
5.16e. First equation. Missing right parenthesis. (David W. Crawford) OK
7.4a. Replace y by m. (David W. Crawford) OK
7.4b. Should be p_{2} not p+2. (Eric Rasmusen)
7.5a. Quasilinear preferences are not defined until later. (David W. Crawford)
7.5b. Answer should be p_{1} < u(1)  p_{2}. (David W. Crawford) OK
7.5c. Replace y by m. Answer should be

8.4. Solution reverses p and q. (David W. Crawford) OK
8.16c Should have )/4 not )4. (Eric Rasmusen)
17.4. Should add final solution p_{2} = [(1a)/ a], > x_{1}^{a} = 1a, x_{2}^{a} = 1 a , x_{1}^{b} = a, x_{2}^{b} = a (Eric Rasmusen)
Errata in first printing
7. The figure label on the righthand side of the page should be eliminated.
30. The second order condition should be

112. In discussion of CES utility function we should have r = r/(r1). (John Nachbar) FIXED
116 Engle should be Engel. (John Kennan) FIXED
148. Third equation on page should have X(f(p),q,m)) in middle. FIXED
163. Prices have superscripts in diagram label, but subscripts in diagram. FIXED
191. Next to last paragraph should say: ``... is true, and that E is an event ...'' FIXED
195. Problem 11 (d) should say: ``Let w_{0} be the amount of money that would give you the same utility you would have if you played this game. Solve for w_{0}.'' The answer in the back of the book should then be changed to w_{0} = e^{ln(2)/p}. (Jim Andreoni) FIXED
203. First line: ``as'' should be ``a''. FIXED
217. Figure label on wrong side of page. FIXED
223. Figure label on wrong side of page. FIXED
300. Second equation and text following should be:

319. Figure label on wrong side of page. FIXED
337. In problem 17.10, we should have p ³ 0. (David Kiefer)
344. In assumptions 7, 8, and 9 the firm production sets should actually be the aggregate production set. (John Kennan)
402. Orphan line at end of page. FIXED
443, equation (25.2). Should have c(a), not c(x(a)). (Francisco Armando da Costa)
44951 The geometry of the moral hazard problem described here is wrong. Since p_{1a} + p_{2a} = p_{1b} + p_{2b} = 1, the slope of the line in (25.10) (the incentive compatibility constraint) should be 1. This should be corrected in Figures 25.1 and 25.2. The last sentence on page 449 should read ``The nature to the solution to the principal agent problem depends on whether the incentive compatibility line intersects the vertical or the horizontal axis.'' (Rachel Kranton) FIXED
451. First equations referenced should be (25.625.7) and [`u] should be +[`u]. (Ed Zajac) FIXED
471. First equation on page should be

476. In last full paragraph on page ``give'' should be ``given.'' Also border is on lowerright hand side here, but upper lefthand side on page 499. This is equivalent, but I should be consistent. FIXED
479. Should have boldfaced x's in Jacobian matrix. FIXED
480. Fourth line, last derivative should be Df(x). FIXED
A5. Nash, J. (1951) should be volume 54, not 44. Nash, J. (1954) should be Nash, J. (1950) and ``states'' should be ``points.'' (John Kennan).