Robert H. Frank,
Cornell University
Ian C. Parker,
University of Toronto
| Chain index | Single price index series created by splicing together two or more overlapping series based on different reference years with different quantity weights.
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| Commitment device | A device that commits a person to behave in a certain way in the future, even though he may wish to behave otherwise when the time comes.
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| Consumer surplus | A dollar measure of the extent to which a consumer benefits from participating in a transaction.
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| Marginal rate of time preference | The number of units of consumption in the future a consumer would exchange for 1 unit of consumption in the present.
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| Permanent income | The present value of lifetime income.
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| Positional good | A good whose value depends strongly on how it compares with similar goods consumed by others; also called a status good.
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| Present value | The present value of a payment of X dollars T years from now is X/(1 + r)T, where r is the annual rate of interest.
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| Two-part pricing | Pricing system with a fixed access fee and a charge per unit of a good purchased.
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2002 McGraw-Hill Higher Education