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 bernheim
Bernheim and Whinston’s 2nd edition of Microeconomics is uniquely designed to appeal to a variety of learning
styles. The text offers a current take on core, traditional material and also covers exciting recent developments in whinston
microeconomics, such as game theory, information economics, and behavioral economics. All content is delivered
in a combination of print, digital, and mobile formats appropriate for the modern learner.

microeconomics
new to this edition
Calculus has been integrated in a unique way that makes the content equally appropriate for courses
that require calculus and those that don’t. Features include calculus-related text boxes next to applicable
discussions, calculus versions of Worked-Out Problems and In-Text Exercises, and calculus-based end-of-
chapter problems—all of which can easily be skipped if desired, allowing for fexibility in calculus coverage.

Enhanced and new features include video solutions for every In-Text Exercise, which walk students step-by-
step through the answers. Also, Read More Online content helps expand explanations beyond the text for better
student understanding.

McGraw-Hill Connect® Plus features auto-gradable assignable homework and study content, fully integrated with an
eBook offering search, highlight, and note-taking capability. All end-of-chapter exercises—Questions, Problems, and
Calculus Problems—will be assignable in Connect, along with the book’s Test Bank.

Within Connect, LearnSmart adaptive study modules help students master core concepts and terminology in each
chapter, making it easier for them to engage with the text’s numerous applications and relevant examples.

Barcodes within chapters provide mobile access to online resources, including calculus versions of the
Worked-Out Problems, the Read More Online feature, and video solutions for In-Text Exercises.

For more information, visit www.mhhe.com/bernheim2e

Md. Dalim #1223206 1/16/13 Cyan Mag Yelo Black

2e bernheim | whinston

microeconomics
ISBN 978-0-07-337585-4
MHID 0-07-337585-3

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EAN

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 Rev.Confirming Pages

MICROECONOMICS
SECOND EDITION

B. Douglas Bernheim
Stanford University

Michael D. Whinston
Northwestern University

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 Rev.Confirming Pages

MICROECONOMICS, SECOND EDITION

Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of
the Americas, New York, NY, 10020. Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights
reserved. Printed in the United States of America. Previous edition © 2008. No part of this publication
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Library of Congress Cataloging-in-Publication Data

Bernheim, B. Douglas.
Microeconomics / B. Douglas Bernheim, Michael D. Whinston.—Second edition.
pages cm.—(The McGraw-Hill series in economics)
Includes index.
ISBN 978-0-07-337585-4 (alk. paper)—ISBN 0-07-337585-3 (alk. paper)
1. Microeconomics. I. Whinston, Michael Dennis. II. Title.
HB172.B485 2014
338.5—dc23
2012049438

The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a web-
site does not indicate an endorsement by the authors or McGraw-Hill, and McGraw-Hill does not guaran-
tee the accuracy of the information presented at these sites.

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 Rev.Confirming Pages

The McGraw-Hill Series in Economics

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Dedication
To our families

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 Rev.Confirming Pages

ABOUT THE AUTHORS

B. Douglas Bernheim is the Edward Ames Edmonds Professor of Economics at
Stanford University. He has also taught in the Department of Finance at Northwest-
ern University’s J.L. Kellogg Graduate School of Management and the Department of
Economics at Princeton University. He received his A.B. from Harvard University in
1979, and Ph.D. from M.I.T. in 1982. Professor Bernheim’s work has spanned a number
of fields, including public economics, political economy, game theory, contract theory,
behavioral economics, industrial organization, and financial economics. He is a Fellow
of the American Academy of Arts and Sciences and of the Econometric Society. He
has also served as Co-Editor of the American Economic Review, the profession’s most
widely read journal. Professor Bernheim’s teaching has included undergraduate courses
in microeconomics and public economics, and graduate courses in microeconomics,
public economics, political economy, industrial organization, behavioral economics, and
insurance and risk management.

Michael D. Whinston is the Robert E. and Emily H. King Professor of Business

Institutions in the Department of Economics at Northwestern University, where he
also holds appointments at the Kellogg Graduate School of Management and the Law
School. Prior to moving to Northwestern, he taught at Harvard. Professor Whinston
received his B.S. from the Wharton School at the University of Pennsylvania in 1980,
his M.B.A. from the Wharton School in 1984, and his Ph.D. from M.I.T. in 1984. His
research has covered a variety of topics in microeconomics and industrial organization,
including game theory, the design of contracts and organizations, firm behavior in
oligopolistic markets, antitrust, and law and economics. Professor Whinston is a
co-author of the leading graduate textbook in microeconomics, Microeconomic Theory
[Oxford University Press, 1995]. He is a Fellow of the Econometric Society and has also
served as a Co-Editor of the RAND Journal of Economics, the leading journal in indus-
trial organization. His teaching has included undergraduate microeconomics, as well as
graduate courses in microeconomics, industrial organization, and competitive strategy.

Professors Bernheim and Whinston met during the early 1980s while in graduate school
at M.I.T., where they began a long and productive collaboration, as well as a close
friendship. Together they have co-authored eight published articles in addition to this
book. In the course of their collaboration, they have been known to argue with each
other for hours about trivial details, such as whether a sentence should use the word
“however” or “nevertheless.” It is a miracle that they managed to complete this book
and its revision for the second edition.

vii

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PREFACE

ll of us confront an endless variety of economic choices. Some of those choices

involve personal matters such as financing the purchase of a new car or saving
for retirement. Some involve business matters such as cost-effective production
techniques or investment in new product development. Some involve matters of public
policy, such as whether to vote for a school bond initiative or a candidate who advocates
a particular flavor of health care reform. Sometimes good economic decision making is
just a matter of common sense. But in many situations, a command of basic microeco-
nomic principles helps us understand the consequences of our choices and make better
decisions.
Our object in writing this book is to provide students with a treatment of intermedi-
ate microeconomics that stimulates their interest in the field, introduces them to the tools
of the discipline, and starts them on the path toward “thinking like an economist.” Most
students will not turn out to be economists, but whether they end up making business
decisions, helping to design public policies, or simply managing their own money, the
tools of microeconomics can prove invaluable.

WHAT’S NEW IN THE

SECOND EDITION?
We received a great deal of helpful feedback on the first edition of Microeconomics, and
we paid careful attention to it. While we worked hard to improve the book in all dimen-
Read More
Online, Calculus sions, our main focus was on the insightful suggestions we received for enhancing its use-
Worked-Out fulness to students and instructors. The following is a quick synopsis of the main ways in
Problems, and
Calculus In-Text which the second edition differs from the first.
Exercises
available at
www.mhhe.com/
bernheim2e, or USE OF TECHNOLOGY
scan here. Need a barcode reader? Try
ScanLife, available in your app store. Recent technological developments have started to blur the boundaries of the traditional
textbook, opening new vistas for improved pedagogy. In producing the second edition,
we have taken advantage of these possibilities, creating a great deal of useful material
that does not appear in the physical book. Microeconomics is the most digitally focused
product available for the intermediate microeconomics course.
For students using smartphones and tablets, scanning barcodes (or QR codes) located
within the chapters provide immediate access to more resources. There are two types of
codes in each chapter.
> The barcode appearing on the first page of each chapter gives students access to
additional chapter resources which include:
• Read More Online features for that chapter.
• Calculus Worked-Out Problems that mirror the chapter’s Worked-Out Problems.
• Calculus In-Text Exercises that mirror the In-Text Exercises in the chapter.
• Solutions to the Calculus In-Text Exercises.

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> The barcodes next to each In-Text Exercise lead the student to text and video solu-
tions for that chapter’s exercises. Students are encouraged to work through the In-Text
Exercises themselves and then check either solution format to check their answer, or Want the video or
to get help if they’re unsure how to solve the problem. The video solutions add extra text solution? Visit
www.mhhe.com/
commentary so students can clearly understand the thought processes involved in bernheim2e or
solving these exercises. They are valuable study tools for completing homework and scan here. Need a
barcode reader? Try
preparing for exams. ScanLife, available in
your app store.
Students not using smartphones or tablets can access the same resources by clicking
the barcodes when viewing the eBook or by going to www.mhhe.com/bernheim2e.
Microeconomics is also designed to be used with McGraw-Hill Connect Plus® Eco-
nomics, an online assessment and grading program that allows instructors to administer
homework entirely online. (See more details at the end of this preface and on the inside
cover.) Connect Plus Economics includes the following elements:
> End-of-chapter questions and problems available both as they appear in the text and
ber75853_ch05_118-161.indd 123 11/12/12 3:16 PM
as algorithmic variations—the same question but with different values to solve for.
> Graphing problems.
> Detailed feedback for each question and problem. Select problems have video feed-
back so students can view step-by-step solutions and explanations.
> LearnSmart™, an adaptive learning system that uses a series of probing questions to
pinpoint each student’s knowledge gaps, is available as part of Connect. LearnSmart
analyzes the gaps and then provides an optimal learning path for each student.
> A media-rich, interactive eBook is included in Connect Plus, which contains links to
the special features in the barcodes as well as other resources. Also, as students are
working on a homework problem in Connect, there will be a link from that problem
to the appropriate place in the eBook where a student can get more help.

A FLEXIBLE ROLE FOR CALCULUS

We re-engineered the second edition so that it is equally appropriate for courses that
require calculus and those that don’t. The fundamental concepts and intuitions of micro-
economics remain the same regardless of whether calculus is used. For example, in both
cases, students need to learn about marginal cost and its relationship to total cost. Also,
in both cases, all but the most mathematically inclined students understand these con-
cepts best when they are explained with the same clear diagrams. While students who If you have the formula
know calculus can perform the extra step of taking the relevant derivative (for example, for an indifference
to obtain the marginal function curve from the total function curve), this step is easily curve, you can find
the marginal rate of substitution
compartmentalized. That is what we have done in this edition. Calculus is included in the by taking the derivative and
following ways: multiplying by 21. To see a
worked-out example, look at
> Calculus concepts are explained in text boxes and are indicated with an icon. Read More Online 4.3.
> Calculus versions of the text’s Worked-Out Problems and In-Text Exercises are avail-
able to students in two ways.
• Access materials directly online, either through the Connect Plus ebook or through
the text’s website at www.mhhe.com/bernheim2e.

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IN-TEXT EXERCISE 3.3 Suppose
for up to six hours. The total benef
total cost is C(H ) 5 110H 1 24H
benefit is MB(H ) 5 654 2 80H
What is your best choice?
> The end-of-chapter exercises include calculus problems. To simplify the process of
• By scanning a barcode at the beginning of the chapter using a smartphone or
tablet, students can get instant access to these materials without needing to log
onto their computers. Whenever there is a calculus version of an In-Text Exercise
or Worked-Out Problem, the calculus icon appears next to it.
assigning suitable problems, we organize these exercises into three groups: Discus-
sion Questions, Problems, and Calculus Problems. In many cases, we provide both
calculus and non-calculus versions of the same exercise. While calculus has many
important uses in microeconomics, we take the view that, at the intermediate level,
non-calculus students can solve the same quantitative problems as calculus students,
as long as they are provided with the formulas for marginal cost, marginal, utility,
and the like. The task of deriving those formulas by taking a derivative is primarily a
quick technical step in the solution of the typical problem, rather than an economi-
cally interesting one.

STREAMLINED EXPOSITION
The typical course in intermediate microeconomics covers a lot of ground. But the reality
is that students have limited time and patience for unnecessarily long-winded explanations.
So it is important to address each topic with an economy of words. Short. Clear. Punchy.
We’ve put in a lot of work to make sure each section of our text fits that description. We’ve
also streamlined the text by converting optional materials to Read More Online features.

RETAINED CORE PRINCIPLES

While much has changed between the first and second editions, much has also remained
the same. It is therefore worth reaffirming our commitment to the principles we articu-
lated in the preface to the first edition.
> Accessibility. Microeconomics teaches economic principles and builds economic
intuition without heavy reliance on formal mathematics.
> Clarity. We have worked hard to make sure that the writing in Microeconomics is
transparent, the explanations are clear and intuitive, and the graphs lead students
naturally through the key ideas.
> Up-to-date coverage. The book covers exciting recent developments in microeconom-
ics, drawing for example on game theory, information economics, and behavioral
economics, and providing applications involving topics of current interest.
ber75853_ch03_057-082.indd 71
> Accuracy. Microeconomics employs clear and understandable
10/19/12 8:00 PM
explanations of micro-
economic principals without resorting to common “fudges” that appear in many
other texts.
> Usefulness. Students learn to solve quantitative problems whether or not they use
calculus.
> Relevance. In Microeconomics, we always explain why we ask the student to learn a
particular concept, and underscore the material’s relevance by featuring fact-based
applications.

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PEDAGOGY FOR STUDENT SUCCESS

A wealth of additional learning features and enrichment materials are provided within
the text and online to supplement students’ understanding of the subject matter.

LEARNING OBJECTIVES L EARNING O BJECTIVES

Each chapter begins with a list of key learning
objectives to help focus planning for instructors and After reading this chapter, students should be able to:

studying for students. } Explain what supply and demand curves for a good, and supply and
demand functions, represent.
} Identify various market forces that shift supply and demand curves.
} Use the concept of market equilibrium to calculate the equilibrium price
Application 2.2 and the amount bought and sold.

A Room with a View (and its Price) } Evaluate how changes in demand or supply affect market equilibrium.
} Understand elasticity and the way economists use it to measure the
T he elegant Bar Harbor Inn overlooks beautiful Frenchman’s
Bay in Bar Harbor, Maine, just minutes from Acadia National
Park. At the height of the summer tourist season, the inn’s most
expensive rooms cost over $350 per night. Unfortunately, those
same tourists have little interest in visiting once the leaves have
fallen from the trees. By then, they’re thinking of Caribbean
beaches or the ski slopes in Colorado and Utah.
APPLICATIONS
As a result, the price of hotel rooms at Bar Harbor’s many inns,
which together make up the supply in this market, vary greatly by
These in-text boxes highlight real-world examples
season. As Figure 2.7 shows, the supply curve for hotel rooms in
Bar Harbor is the same in November as in July.3 The quantity Q is
The Bar Harbor Inn
that put concepts into practice.
the total number of rooms. At high prices, innkeepers want to rent
all those rooms, but at low prices, they withdraw some rooms
from the supply, since the price no longer compensates them the price in November (PNov ) is much lower than the price in
for the expense and effort of serving customers. (In the dead of (PJuly ). In 2012, for example, a tourist paid $385 a night to sta
winter, some inn owners close temporarily and take a vacation.) the Bar Harbor Inn’s best room during July, but only $165 a n
The demand in the two months is very different however so that to stay in the same room during November

WORKED-OUT PROBLEMS WORKED-OUT PROBLEM 4.2

Each chapter includes Worked-Out Problems to

ber75853_ch02_024-056.indd 35 10/19/12 7:22 PM
The Problem Mitra enjoys reading books and watching movies. Her utility
show students how to solve the problems posed in function is U(M, B) 5 M 3 B2, where M stands for the number of movies and B
stands for the number of books enjoyed during a month. How does Mitra rank
the chapter and to prepare them for homework and the following bundles? (1) 4 movies and 5 books, (2) 10 movies and 4 books, (3)
25 movies and 2 books, (4) 40 movies and 1 book, (5) 100 movies and no books.
exams. Each problem is clearly stated and the solu- The Solution Applying Mitra’s utility function, we find for part (1) that U(4, 5)
tion contains detailed steps and narrative explana- 5 4 3 52 5 100. Similarly, we have, (2) U(10, 4) 5 160, (3) U(25, 2) 5 100,
(4) U(40, 1) 5 40, and (5) U(100, 0) 5 0. Therefore, Mitra ranks the bundles
tions to show how the problem is solved. Calculus ber75853_ch02_024-056.indd 24
listed in the problem, in order of preference, as follows: first, 10 movies and
10/19/12 7:22 PM
4 books; next, either 4 movies and 5 books or 25 movies and 2 books (she is
versions of the problems and solutions are available indifferent between those two bundles); next, 40 movies and 1 book; and last,
100 movies and no books.
by scanning the barcode at the beginning of the
chapter or at www.mhhe.com/bernheim2e.

IN-TEXT EXERCISES Want the video or

text solution? Visit
www.mhhe.com/
IN-TEXT EXERCISE 4.2 Judy drinks both Coke and Pepsi. Suppose the formula for
her indifference curves is C 5 U 2 1.2P, where C stands for liters of Coke and P
stands for liters of Pepsi consumed over a month. Draw some of Judy’s indifference
These ask students to either redo the Worked-Out bernheim2e or
scan here. Need a curves. Which does she prefer, a bundle consisting of three liters of Coke and no
barcode reader? Try
Pepsi, or a bundle consisting of three liters of Pepsi and no Coke?
Problem or extend the concept in a slightly different ScanLife, available in
your app store.

way. Solutions are available in text form and—new to

this edition—in video format. The videos walk students
through the solutions, reinforcing the lessons from lectures and independent reading. The
videos and text solutions can be accessed at www.mhhe.com/bernheim2e, or by scanning
the barcode next to the exercise with a smartphone. ber75853_ch04_083-117.indd 105 11/12/12 3:15 PM

xi
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Figure 5.6
The Best Affordable Bundle
with Perfect Complements.
Bundle A is Maria’s best choice.
Since bundle A lies on the
Right shoes

45-degree line, Maria buys the

Best affordable
bundle same number of left and right
shoes. This conclusion doesn’t FIGURES AND TABLES
A depend on the slope of the
budget line. Even if the prices of
The exhibits, graphs, and tables are critical for students
left and right shoes differ, Maria
will still buy the same number
to understand the world of microeconomics. Color
45°
of each.
is used to help students understand the make-up and
Left shoes meaning of each graph, and an extended caption is
included with figures to further explain the concepts.

READ MORE ONLINE

ber75853_ch05_118-161.indd 125
READ MORE ONLINE 2.1 11/12/12 3:16 PM Read More Online features, which offer additional
in-depth discussion of particular topics, are found
ESTIMATING DEMAND AND SUPPLY CURVES
throughout the book. These can be accessed through
the barcode at the beginning of the chapter, or online
at www.mhhe.com/bernheim2e. A list of these exten-
To answer many questions in economics and business, we need to measure the sions appears on page (pages xxviii and xxix).
relationships between the amount demanded and/or supplied and various factors,
including the product’s price. We’ve already seen that we need to know demand and
supply functions to predict market prices. Later in this book, we’ll see that this same
knowledge is useful for such diverse purposes as evaluating the effects of a tax and

OPTIONAL SECTIONS
*3.4 CONSTRAINED OPTIMIZATION
While we have moved some optional topics to Read More
Online features, we’ve kept ones that strike us and our Many economic problems we’ll study have the feature that a de
constraint that affects several decisions, requiring that she ma
reviewers as particularly important in the text. These are them. For example, the fact that you can’t spend more than is i
is a constraint that affects both where you go for spring break a
marked with an asterisk so that students can easily distin- a new smartphone. Likewise, consider a consumer who has t
guish them from core material.

CALCULUS TEXT BOXES

In addition to Calculus versions of the Worked-Out If you have the formula
for an indifference
Problem and In-Text Exercises, Calculus text boxes curve, you can find
explain how to understand the marginal rate of substitution
the material through by taking the derivative and
the lens of calculus. multiplying by 21. To see a
worked-out example, look at
Read More Online 4.3. D I S C U S S I O N Q U E ST I O N S

IMPROVED AND EXPANDED END-OF-

1. After terrorists destroyed the World Trade Center
CHAPTER EXERCISES and surrounding office buildings on September 11,
2001, some businesspeople worried about the risks

Many instructors who used the first edition asked us to of remaining in Manhattan. What effect would you
expect their concern to have on the price of office
space in Manhattan? Over time, those fears eased
beef up the end-of-chapter exercises. We heard you loud
ber75853_rmo_2.1.indd 1 08/01/13 2:29 PM
and
d the
th area around d the
th World
W ld Trade
T d Center site was
PROBLEMS* made into a park, so the destroyed office buildings
uildin
and clear. Users of the second edition will find a much were never rebuilt. Who would be likely to gain
economically from the creation of this park? Who
k? Wh

larger number of exercises and better representation of the would be likely to lose?
1.A Consider again the demand function for corn
in formula (1). Graph the corresponding demand
4.B Suppose tha
Q d 5 200/P

topics covered in the text. We have also divided the exer- curve when potatoes and butter cost $0.75 and $4 per
pound, respectively, and average income is $40,000 per
the equilibr
5.B The daily w
year. At what price does the amount demanded equal millions of
cises for each chapter into three sections: Discussion Ques- 15 billion bushels per year? Show your answer using
algebra.
supply func
per gallon.

tions, which require thought but no math (or at least very ber75853_ch03_057-082.indd 73
2.A Consider again the supply function for corn in
formula (2). Graph the corresponding supply curve
What is the
6.B Consider ag 10/12/12 10:47 AM
when diesel fuel costs $2.75 per gallon and the price in Worked-
little); Problems, which require algebra, graphs, or both; of soybeans is $10 per bushel. At what price does the
amount supplied equal 21 billion bushels per year?
governmen
for a third-w

and Calculus Problems, which typically include (but are not CA LC U LU S P R O B L E M S *

limited to) calculus versions of some of the Problems. We 1.B The demand function for a product is Q d 5 100 2 BdP. consumers’ total e

also rate the difficulty of each exercise, using A for Easi- Suppose that there is a tax of t dollars per unit that
producers must pay and that the supply function
answer should be i
4.C Let P denote the p
for the product when the tax is t and the price is P is using a single inpu
est, B for More Difficult, and C for Most Difficult. Much Q s 5 Bs (P 2 t) 2 5. What is the equilibrium price
as a function of the tax t? Define the “pass-through
function for the pr
the supply functio
rate” of a small increase in the tax as the derivative Q s 5 0 if P # W. H
thought and effort has gone into creating questions that of the market price consumers pay with respect to the
tax: dP/dt. What is the pass-through rate of a small
depend on W? Wh
price P with respe
students will find tractable and enlightening. tax increase in this market? How does it depend on Bd
and Bs? 5.C Suppose that the d
Q d 5 AP2B and th
2.B Suppose the daily demand for coffee in Seattle is where A, B, C, and
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Q d 5 100,000(3 2 P)2. What is the elasticity of a. What is the ela

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 Rev.Confirming Pages

ORGANIZATION OF THE BOOK

The organization of Microeconomics is slightly unconventional for an undergradu-
ate microeconomics text, but has the advantage of following the logical progression of
the discipline. Microeconomic theory begins by examining the behavior of individuals
in their roles as either consumers or managers of firms. On this foundation, it builds
a theory of aggregate economic outcomes, with an emphasis on market equilibrium.
Microeconomics follows this logical structure more closely than other texts by clearly
distinguishing the study of individual decision making from the analysis of markets. It is
divided into the following three parts.
Part I contains three introductory chapters. The first introduces the field of micro-
economics. The second reviews the basic principles of supply and demand. The third
elaborates on a central theme of microeconomics reasoning: how to find a decision that
maximizes the difference between total benefits and total costs by equating marginal bene-
fits to marginal costs. We invoke that principle repeatedly throughout the rest of the book.
Part II focuses on individuals’ economic decisions. Three chapters on consumer the-
ory (Chapters 4–6) and three on producer theory (Chapters 7–9) are followed by three
chapters (Chapters 10–12) covering decisions involving time, uncertainty, and strategy
(game theory). An additional chapter (Chapter 13) examines behavioral perspectives on
economic decision making.
Part III concerns markets. We begin with three chapters covering competitive markets
(Chapters 14–16), including one on partial equilibrium theory, one on the analysis of gov-
ernment interventions, and one on general equilibrium. We then turn to market failures,
including three chapters on monopoly and oligopoly (Chapters 17–19), one on externali-
ties and public goods (Chapter 20), and one on informational imperfections (Chapter 21).
While the organization of the book emphasizes the distinction between topics con-
cerning decision making and topics concerning markets, we recognize that instructors
may not wish to teach the material in that order. For example, many instructors may wish
to jump directly from basic producer theory (which concludes in Chapter 9) to competi-
tive equilibrium (which begins in Chapter 14), returning to the additional topics on deci-
sion making as time allows. The book is written to provide instructors with this flexibility.

ALTERNATIVE COURSE DESIGNS

Instructors who use this book can organize their courses in a variety of different ways. A
basic one-semester or one-quarter course might cover all of Chapters 1–9, 14–15, and 17.
Alternatively, by covering fewer sections in some of those chapters, Chapters 18.1–18.3,
19, and 20 might be added. A more ambitious course, or one lasting two terms, might also
cover parts of Chapters 10–13 (additional topics on decision making), 16 (general equi-
librium), the remainder of 18 (price discrimination through self-selection and bundling),
and 21 (informational imperfections). As we’ve noted, the material on decisions involving
time, uncertainty, and strategy (game theory) in Chapters 10–12 could be covered imme-
diately after covering consumer and producer theory, or delayed until later in the course.
Business-oriented courses might instead reduce to some degree their coverage of
consumer theory (Chapters 4–6) and externalities and public goods (Chapter 20) in favor
of covering game theory (Chapter 12) and all of Chapter 18 on pricing policies. More
policy-oriented courses might skip over Chapter 18 entirely in favor of covering general
equilibrium (Chapter 16).
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 Rev.Confirming Pages

As we’ve mentioned, the book devotes a separate chapter to behavioral econom-

ics (Chapter 13). That material is entirely compartmentalized, and any instructor who
wishes to teach a conventional course on intermediate microeconomics can simply skip
the chapter. For those who are interested in introducing behavioral perspectives, we have
designed the chapter with a modular structure, so that it can be used in one of two differ-
ent ways. Most obviously, an instructor can introduce behavioral economics as a stand-
alone topic, covering all or part of the chapter. Alternatively, an instructor can integrate
behavioral perspectives with traditional perspectives, for example, covering Sections 13.1
and 13.2 after basic consumer theory (Chapters 4 through 6), Section 13.3 after deci-
sions involving time (Chapter 10), Section 13.4 after decisions involving uncertainty
(Chapter 11), and Section 13.5 after decisions involving strategy (Chapter 12).
McGraw-Hill Learning Solutions provides options for customizing your text. Contact
your McGraw-Hill representative for details.

SUPPLEMENTARY MATERIALS
Microeconomics strives to present economics clearly and logically, giving students insight
into the world around them. To help instructors make the topic more accessible to stu-
dents, Microeconomics offers a range of materials written to integrate seamlessly with the
text, providing extra practice for students and additional resources for teachers. These
resources include:
Instructor’s Manual—The Instructor’s Manual provides instructors with additional
insight into the various chapters and examples in Microeconomics, as well as
resources for bringing the concepts to life within the classroom. It is a must for new
teachers and those new to this book, because it identifies the goals of each chap-
ter and highlights common areas of student difficulty. The Instructor’s Manual also
includes several fully developed case studies that show microeconomics at work in
the world and that offer graduated questions—allowing instructors to cover as much
or as little of the book as they see fit, and making the case studies usable from the
very first week of class. Detailed solutions to the end-of-chapter questions and prob-
lems are also available.
Test Bank and EZTest Online—The Test Bank is comprised of over 50 questions per
chapter, including multiple-choice, short-answer, and essay question options. Each
question is tagged by level of difficulty, section in the book, and AACSB category.
EZTest Online contains all of the questions in the test bank and offers the ability to
create customized exams. This user-friendly program allows instructors to sort ques-
tions by format, edit existing questions or add new ones, and scramble questions for
multiple versions of the same test.
PowerPoint Presentations—The PowerPoint Presentations to accompany Microeco-
nomics are cutting-edge, assisting learning by drawing selected graphs one line at a
time on screen. The animation—simple enough to be clear while complete enough to
be useful—also helps to demonstrate how tables can be assembled and data analyzed
when completing problems. The presentations include exhibits from the book itself,
creating a seamless connection between what students have read and what they see
in the lecture.

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Online Learning Center (www.mhhe.com/bernheim2e)—The Online Learning Center

contains the above materials for instructors and also materials for students, includ-
ing quizzes, Read More Online features, In-Text Exercise solutions, and Calculus In-
Text Exercises and Worked-Out Problems.

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• Offer access to lectures anytime and anywhere by computer, iPod, or mobile device.

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ACKNOWLEDGEMENTS
Many people have made important contributions to the development of this book, and
those thanked in the preface to the first edition have our continuing gratitude. The sec-
ond edition has benefited from the unflagging support of the team at McGraw-Hill. We
would like to thank Scott Smith and Michele Janicek, Brand Managers; Alyssa Lincoln
and Christina Kouvelis, Development Editors; Patricia Frederickson, Lead Project
Manager; Keri Johnson, Content Licensing Specialist; and Marianne Musni, Content
Project Manager. We also thank Kane Sweeney for his excellent research assistant work
on this edition.
We also want to thank those that contributed to the digital features for this edition:
Chris Johnson, University of North Florida Debashis Pal, University of Cincinnati
Leonie Stone, SUNY Geneseo Ross vanWassenhove, University of Houston
Daniel Mizak, Frostburg State University
We owe a heartfelt thank you to the many reviewers who helped shape this edition:
Douglas Agbetsiafa, Indiana University– Claire Hammond, Wake Forest University
South Bend Steve Heubeck, Ohio State
Terry Alexander, Iowa State University University–Columbus
Marigee Bacolod, University of Robert Jerome, James Madison University
California–Irvine Sumit Joshi, George Washington University
Amit Batabyal, Rochester Institute of Ernesto Lucas, Hawaii Pacific
Technology University–Honolulu
James Bradfield, Hamilton College Richard Mcgrath, Armstrong Atlantic
Miki Brunyer, Saint John’s University State University
Paul Carrillo, George Washington John Merrifield, University of Texas at
University San Antonio
Tina Carter, Florida State University Farahmand Rezvani, Montclair State
Eliane Catilina, American University University
Ron Cheung, Florida State University Udayan Roy, Long Island University–C.W.
Finn Christensen, Towson University Post Campus
Timothy Classen, Loyola Lynda Rush, California State Polytechnic
University–Chicago University–Pomona
Dennis Coates, University of Maryland– Edward Steinberg, Columbia University
Baltimore County Andrew Stivers, Oregon State University
Yi Deng, University of South Vasant Sukhatme, Macalester College
Florida–Tampa Jane Sung, Truman State University
Joanne Doyle, James Madison University David Switzer, Saint Cloud State
Thomas Grennes, North Carolina State University
University–Raleigh Jason Taylor, Central Michigan University

Each of these individuals invested a great deal of time and effort reviewing the first
edition. Their insightful comments have helped us improve the book immeasurably.

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And, we thank the reviewers who helped us during the development of our first edition:
Arabinda Basistha West Virginia
University
David Bernotas University of Georgia
Ravi Bhandri University of California,
Berkeley
McKinley Blackburn University of South
Carolina
Victor Brajer California State University,
Fullerton
Daniel Condon Dominican University,
Illinois
Jeremiah Cotton University of
Massachusetts
Carl Davidson Michigan State University
Richard Eastin University of Southern
California
Raymond Fisman Columbia University,
Graduate School of Business
Craig Gallet California State University,
Sacramento
Rajeev Goel Illinois State University
Denise Hare Reed College
Jon Harford California State University
Govind Hariharan Kennesaw State
University
Joe Hughes Rutgers University
Todd Idson Boston University
Joseph Jadlow Oklahoma State University
Geoffrey Jehle Vassar College
David Kamerschen University of Georgia,
Athens
Finally, we would like to thank our families once again for their loving support and
patience (which we sorely tested) during the many early mornings, long days, and late
nights that we spent working on this project.
ber75853_fm_i-xxx.indd xix
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Gabriel Lozada University of Utah, Salt
Lake City
Tom Lee California State University,
Northridge
James Leonard Lloyd University of Houston
Wolfgang Mayer University of Cincinnati
Michael Marlow California Polytechnic
David McAdams Massachusetts Institute
of Technology
James Meehan Colby College
Jack Osman San Francisco State University
Edgar Preugschat University of
Minnesota
Luis Rayo University of Chicago
Lynn Riggs DePaul University
Anusuya Roy University of Southern
Indiana
George Santopietro Radford University
Sudipta Sarangi Louisiana State University
Timothy Schibik University of Southern
Indiana
Sergei Severinov Duke University
Curtis Simon Clemson University
Thomas More Smith University of Illinois
Jennifer Van Gilder Ursinus College
Michele Villinski DePauw University
Steve Waters Brigham Young University
Denis Weisman Kansas State University
Randall Westgren University of Illinois,
Urbana-Champaign
B. Douglas Bernheim
Michael D. Whinston
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BRIEF CONTENTS

part Introduction

1 PRELIMINARIES 2
2 SUPPLY AND DEMAND 24
3 BALANCING BENEFITS AND COSTS 57

part Economic Decision Making

II-A: Consumption Decisions 84

4 CONSUMER PREFERENCES 85
5 CONSTRAINTS, CHOICES, AND DEMAND 118
6 DEMAND AND WELFARE 162
II-B: Production Decisions 202
7 TECHNOLOGY AND PRODUCTION 203
8 COST 239
9 PROFIT MAXIMIZATION 279
II-C: Additional Topics Concerning Decisions 308
10 CHOICES INVOLVING TIME 309
11 CHOICES INVOLVING RISK 349
12 CHOICES INVOLVING STRATEGY 387
13 BEHAVIORAL ECONOMICS 430

part Markets

IIIA: Competitive Markets 474

14 EQUILIBRIUM AND EFFICIENCY 475
15 MARKET INTERVENTIONS 513
16 GENERAL EQUILIBRIUM, EFFICIENCY, AND EQUITY 543
IIIB: Market Failures 587
17 MONOPOLY 588
18 PRICING POLICIES 626
19 OLIGOPOLY 660
20 EXTERNALITIES AND PUBLIC GOODS 707
21 ASYMMETRIC INFORMATION 751

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Another random document with
no related content on Scribd:
thermometer, which was set up beneath a little wooden shelter daily,
reached extraordinary maxima. For one whole month the maximum
fluctuated between forty and fifty degrees Centigrade, the
atmosphere becoming heavier and more exhausting as the day wore
on until sunset. During the night the maximum was generally a little
over thirty degrees, and you must remember that I am speaking of
the winter, when the air was pretty well saturated with moisture.
I have read in books of travel of countries where, to avoid
succumbing from the heat, Europeans live in holes dug in the earth,
and make negroes pour more or less fresh water on their heads from
calabashes to keep them cool. We never got as far as that, but I do
think that Say, at least in June and July, can compete in intensity of
heat with any other place in the world.
In such an oven we quite lost our appetites!
Now ensued a time of terrible ennui. All our energy, all our gaiety,
all our philosophy melted away before the awful prospect of living in
this remote and hostile corner of the earth for five whole months; five
months during which we knew we could not stir from the island; five
months in which we must endure all the storms of heaven in our frail
huts, and be exposed to the ceaseless plots against us of Amadu.
The dreary, monotonous days in which nothing happened, did not
even supply us with topics of conversation, so we talked more and
more of France, which of course only intensified our home-sickness.
Taburet, who had a wonderful memory for dates, seemed to find
every day of the month an anniversary of some event.
It became a more serious matter when our ennui resulted in
constant attacks of fever, but fortunately these attacks, thanks to the
daily dose of quinine, were never very serious, only their recurrence
was weakening, the more so that they were accompanied by what
we called the Sudanite fever, a kind of moral affection peculiar to
African soil.
This Sudanite affection betrayed itself by different eccentricities in
different people. It really is the effect of the great heat of the sun
upon anæmic subjects, or upon those whose brains are not very
strong. Sometimes, at about four o’clock in the morning, we used all
of a sudden to hear a series of detonations inside the enceinte.
“Holloa!” we would exclaim, “some one has got an attack of Sudanite
fever, and is working it off by firing at bottles floating on the river.” Or
another of the party would seal himself up hermetically in his hut,
blocking every hole or crack through which a ray of sunlight could
penetrate. The whole of the interior would be hung with blue stuff,
under the pretence that red or white light would give fever. Another
case of Sudanite!
We could cite many more examples of the disease during our stay
at Fort Archinard.
However different may be most of its symptoms, one is always the
same—a patient afflicted with it contradicts everybody and shows an
absolutely intolerant spirit.
Truth to tell, I must add, in common fairness, that we were all
more or less affected by it. We might have managed to pull along
peaceably in an ordinary station with occupations which separated
us from each other sometimes, but in this island, this cage, for it was
little more, we were always rubbing shoulders, so to speak, and
constant friction was inevitable. In fact, we ran our angles into our
neighbours instead of rubbing those angles down. We were regularly
prostrated with our inactive, almost idle life, and the true characters
of each one came out without disguise.
 THE MEMBERS OF THE EXPEDITION AT FORT ARCHINARD.

At table every discussion led to a kind of squabble. Each of us

stuck to his own opinion, even when the most astounding paradoxes
had been enunciated. Sometimes, after a regular row, we all sat
perfectly mute glaring at each other, and wondering what was to
happen next.
At night, or in the hour of the siesta, I used to get out my flute—
another form of the Sudanite fever—and play melodies from the Or
du Rhin or Tristan et Yseult, but even music failed to calm the
disputants. The tension was too great, and I was afraid that, even at
this late period of our expedition, things would go wrong in
consequence.
All of a sudden a happy idea occurred to me, a regular inspiration
from Heaven, which every one fell in with at once.
This idea was simply that we should all work, and the result was
the immediate restoration of order.
 It was a simple task enough that we now set ourselves to do, just
to make vocabularies of the various more or less barbarous idioms in
use in the Niger districts. There were plenty to choose from, for there
is more confusion of tongues, such as is described in the Bible, in
these parts than anywhere else. There is a perfectly inexhaustible
supply of peculiar phrases.
For instance, between Abo, in the highest part of the delta of the
Niger, and the sea, as an officer of the Royal Niger Company told
me, there are no less than seven dialects spoken, none of which
have the very slightest affinity with each other. It would appear that
one wave of migration has succeeded another, as the breakers do
on the beach, the natives composing the different parties of
emigrants dying out, or leaving only a few survivors stranded like
islets in a flood in the tropical forests, retaining their original customs
and dialects, and continuing to offer sacrifices in the old way,
uninfluenced by the other native populations.
It has been different further inland, for the last emigrants have
been absorbed by the earlier settlers, rather than driven back, but at
the same time their characteristics have not been merged in those of
other tribes, so that we still find side by side totally different customs,
and people speaking different dialects quite unlike each other, such
as the Tuareg, Fulah, Songhay, Bambara, Bozo, Mossi, etc., almost
equally distributed over extensive districts.
So we all set to work. Father Hacquart and I buckled to at the
Tuareg language. Pullo Khalifa turned out to be an indifferent
teacher, though he was full of good-will. He was never at a loss for
the signification of a word, but his renderings were mostly merely
approximate. I have already dwelt upon the peculiarities of the
Tuareg language in a previous chapter, so I will only add here that
we had two other instructors in it, another Fulah, a Mahommedan,
who shilly-shallied a good deal in his interpretations, and a female
blacksmith of Bokar Wandieïdiu, now attached to the service of
Ibrahim Galadio, who lent her to us. The last-named was certainly
the most interesting of our linguistic professors. She had a
tremendous voice, and was as ugly as sin, but she gave herself
many airs and graces. With the aid of these three and a few others
we drew up quite an imposing comparative vocabulary of the Tuareg
language.
Father Hacquart also devoted some time to the study of Songhay,
which is spoken between Say and Timbuktu, and also in other
districts beyond those towns in the east and west, for we meet with it
again at Jenné and at Aghades. Near Say, they call the Songhay
language djermanké. Pretty well every one undertook to teach us
Songhay; it was a simple dialect enough, spoken through the nose,
and it was likely to be very useful to us. The Pères blancs of
Timbuktu give especial attention to its study.
Tierno Abdulaye Dem, a few coolies, old Suleyman, who had
deserted Amadu, tired of wandering about after him, and had
rejoined us to go back to his beloved Foota, used to assemble every
day in Baudry’s hut, which was transformed into a Fulah academy.
Most unexpected results ensued from these meetings. The Fulah
language is a very charming one, and has been carefully studied by
General Faidherbe and M. de Giraudon, but there is still a good deal
to be learnt about it. It is very difficult to connect it with any other. It is
the one language necessary for travelling or for trading between
Saint Louis and Lake Tchad. There have been many theories on the
subject of the Fulah migration, and a great deal of nonsense has
been talked about it. Baudry, who studied the language with the
greatest zeal, discovered some extraordinary grammatical rules in it
and strange idioms, enough to frighten M. Brid’oison himself. No one
could now utter two or three words at table without Baudry declaring
how they could be translated into one Fulah expression. The
following example will give an idea of how much could be expressed
in a Fulah word. I must add, however, that Baudry and Tierno
Abdulaye agree in saying it is very seldom used.
The word I allude to is Nannantundiritde, which signifies to
pretend to go and ask mutually and reciprocally for news of each
other.
Tierno Abdulaye, who was a Toucouleur from the Senegal
districts, gave out that he could speak his maternal language or
Fulah pretty perfectly. When, however, Baudry set to work to explain
to him the formation of Fulah words which he claimed to have
discovered, Tierno realized that after all he did not know much about
it, so he tried to acquire grammatical Fulah, with the result that many
of his fellow-countrymen could not understand what he said. They
were completely confused by all these new rules, but Baudry was
delighted at having won a disciple.
The people of Massina, or the districts near the great bend of the
Niger, speak very quietly and in a low voice, as if they realized the
beauty of their language, and do not trouble themselves very much
about strict grammatical accuracy. The Fulah tongue, in fact, admits
of an immense number of shades of expression, and though there is
not perhaps exactly anything that can be called Fulah literature,
except for a few songs which can only be obtained from the griots
with the greatest difficulty, the language simply teems with proverbs.
Here are a few examples, but of course, like all such sayings, they
lose terribly in translation:—
“When you cannot suck the breasts of your mother, you must suck
those of your grandmother.”
“When a man has eaten his hatchet and his axe, he is not likely to
sputter much over broiled pea-nuts.”
“A stick may rot in the water, but that does not make it a
crocodile.”
“There is the skin of a sheep and the skin of a cow, but there is
always a skin.”
Thanks to Osman, Bluzet had unearthed a cobbler or garanké, a
native of Mossi. He was a very worthy fellow, but, it seems to me,
most of his fellow-countrymen are equally estimable. The Mossi, at
least those we knew, were all very easily intimidated, but honest and
trustworthy. At first Bluzet had a good deal of trouble to get any
information out of this Mossi, but when he gained a little confidence
he got on apace, and used to indulge on occasion in long
monologues, as when he treated us to the following little tale, which
he related to us all in Mossi in Bluzet’s hut.
 “One day, a woman going along the road to Say, taking some milk
to market, sat down at the foot of a tree and fell asleep.
“Presently three young men came up, and when they saw the
woman one of them said to the others—
“‘Follow me, and imitate everything I do.’
“They approached her cautiously, making a détour round the
brushwood. ‘Hu! hu!’ cried the leader, when he got close to the
sleeper, and the others shouted after him, ‘Hu! hu!’
“The woman started up terrified, and ran away, leaving the
calabash of milk on the ground.
“Then the eldest of the three young men said, ‘This milk is mine
because I am the eldest.’ ‘No,’ said the second, ‘it is mine because I
thought of crying, Hu! hu!’ ‘No, no,’ cried the third, ‘I mean to drink it,
for I am armed with a spear, and you have only sticks.’
“Just then a marabout passed by. ‘Let him be the judge!’ said the
disputants, and they put their case before him.
“‘I know of nothing in the Koran which applies to your difficulty,’
said the holy man; ‘but show me the milk.’ He took the milk, he
looked at it, he drank it. ‘This is really good milk,’ he added, ‘but
there is nothing about your case in the Koran that I know of.’”
With two other vocabularies of Gurma and Bozo expressions, less
complete than those of the Songhay and Fulah languages, we made
up a total of more than ten thousand new words, to which we added
many very interesting grammatical remarks.
This absorbing occupation, which fortunately became a positive
monomania with some of us, contributed more than anything to our
being able to survive the last month of our stay at Fort Archinard.
OUR QUICK-FIRING GUN.
NATIVES OF SAY.
 CHAPTER VIII

MISTAKES AND FALSE NEWS

We must now return to our arrival at Say. Although the days there
were most of them monotonous enough, they brought their little ups
and downs, and we received news now and then, of which, under
the circumstances, we naturally sometimes exaggerated the
importance. It would be wearisome for me as well as for the reader
to give an account of what happened every day during our long
winter at Fort Archinard. My notes were written under various
difficulties and in very varying moods, reflecting alike my
exaggerated low spirits when things went wrong, and my excess of
delight when anything occurred to cheer me. Consecutive pages of
my journal often contradicted each other, and any one reading them
would imagine they were written by two different persons; but this is
always the way with travellers, and even Barth himself was not
exempt from such fluctuations of mood.
My journal in extenso might serve as an illustration of the
psychology of the lie as illustrated amongst the negroes and
Mussulmans, but no other useful purpose, so I shall greatly
condense it. The reader will still, I hope, get a very good idea of all
we went through. If what I quote is rather incoherent, excuses must
be made for me, for the news we got was often incoherent enough,
and our life at the Fort was rather a puzzle too sometimes, with our
alternations of hope and anxiety.
Friday, April 10.—We are getting on with our fort; our abattis are
finished and ready for any attack. (This was written the day after our
arrival, whilst our work was still in full swing.)
We put the Aube in dry dock to-day, and it took the united efforts
of us all to haul her into position: non-commissioned officers,
interpreters, servants, all had to work, and even we white men lent a
hand. During the operation of turning her on to her side, the poor
Aube might have tumbled to pieces, for all her planks were loose.
But she held together yet once more, and, as you will see, we did not
have to abandon her until the very end of our voyage.
A new recruit joined us to-day, my journal goes on, so with
Suleyman Futanké we have two extra hands now. This was how he
came to join us. During the siesta hour we heard a man shouting
from the other side of the river, “Agony! agony!” and looking out we
saw some one waving a white cloth. We sent the Dantec to fetch
him, and when he arrived he kept shouting “Agony! agony!” in a
joyful voice. He showed us his cap of European make, evidently
expecting us to understand what he meant, but that did not explain
the use of the word “agony” so often.
It was Tedian Diarra, a big Bambarra, who had acted as guide to
General Dodds in the Dahomey campaign, who solved the mystery
at last, and told us that the man had been a porter at Say to the
Decœur expedition. He had been taken ill with an attack of some
discharge from the joints, and had been left under the care of the
chief of the village to be handed over to the first Frenchman who
should happen to pass. The poor fellow, whose name was Atchino,
—at least that is what we always called him,—was trying to explain
to us that he came from the village of Agony on the Wemé. He had
feared he should never see his native village again, with its bananas
and oil palms; but as soon as he heard of our arrival at Say, he came
to take refuge with us. Later I indemnified the man who had taken
care of him for the expense he had been put to. We made this
Atchino our gardener, and he turned out a very useful fellow, a
decided acquisition to our small staff.
Monday, April 13.—We finished the repairs of the Aube. She still
let the water in like a strainer, but, as we always said, we were used
to that. This expression, “used to it,” was perpetually employed by us
all, and it enabled us to bear with philosophy all our troubles. It is, in
fact, the expression which gilds the bitterest pills to be swallowed on
an exploring expedition, and no one need dream of starting on such
a trip as ours if they cannot adopt what we may call the philosophy of
use and wont on every occasion. Have twenty-five of us got to pack
into a boat about the size of my hand? What does it matter? go on
board, you’ll get used to it. Have we got to find place for provisions
and things to exchange with the natives when there is no more
room? Never mind, ship them all, we shall get used to them when we
settle down. Are you in a hostile district? Do rumours of war, of
approaching columns of thousands and thousands of natives uniting
to attack, trouble you? Never mind, they will turn out not to be so
many after all; you are used to these rumours now. You have some
dreadful rapids in front of you; you have got to pass them somehow.
There are so many, you can’t count them. Shall we draw back? Shall
we allow them to check our onward march? No, no, we shall get
used to them. If you take them one by one, you will find that each
fresh one is not worse than the last, and that the hundredth is just
like the first. You get quite used to them, at least if you do not lose
your boats and your life too. Which would be the final getting used to
things, the last settling down!
A diavandu and his sister one day presented themselves at the
camp. These diavandus, who are the guides and confidants of the
people, are everywhere met with amongst the Fulahs. I don’t know
what trade the sister followed, but this diavandu came to offer us his
services. He offered to perform all the usual duties of his office on
our behalf, and was ready either to sell us milk, or to act as a spy for
us. He was a little fellow, of puny, sickly appearance. We made him
drink some quinine dissolved in water, and our people told him that
the bitter beverage contained all the talismans of the infernal
regions. Certainly the witches in Macbeth never made a philtre
nastier than our mixture.
Our diavandu swore by the Koran, without any mental
reservations, that he would be faithful to us, and our spells and the
grisgris we had given him would, he knew, kill him if he were false to
us, or betrayed us in any way. Then we sent him to see what was
going on in Amadu’s camp. I do not know what eventually became of
him, but perhaps if he was false to us the quinine killed him by auto-
suggestion; perhaps he was simply suppressed by our enemies, or
he may have died a natural death; anyhow we never saw either him
or his sister again.
About the same time Pullo Khalifa appeared at Fort Archinard,
sent, he said, by Ibrahim Galadio, the friend of Monteil. He began by
asking us what we wanted, but it really was he who wanted to get
something out of us. We gave him a fine red chechia to replace his
own, which was very dirty and greasy. Later we gave him various
other presents, but, strange to say, he always came to visit us in his
shabbiest garments.

TALIBIA.

Thursday, April 23.—In the evening a sudden noise and confusion

arose on shore at Talibia, and in our camp we heard dogs barking
and women shrieking, whilst the glare of torches lit up the
surrounding darkness. Gradually the tumult died away in the
distance. Had the Toucouleurs been on the way to surprise us, but
finding us prepared given up the idea for the time being? We
shouted to Mahmadu Charogne, but no answer came. Mamé then
fired a fowling-piece into the air, but nothing came of it. All was silent
again, but we passed the night in watching, for we knew that that
very morning a man wearing a white bubu had tried to tamper with
our coolies, and to frighten away the native traders. He had shouted
from the left bank that Amadu had let loose the Silibés upon us,
giving them permission to make war on us, and promising them the
blessing of Allah if they beat us. No wonder such a coincidence as
this put us on our guard.
The next morning Mahmadu explained the uproar of the
preceding evening. It had been a question not of an attack on us, but
of a wedding amongst the Koyraberos. He told us a marriage is
never consummated until the bridegroom has literally torn away his
bride from her people, and the rite of abduction, for a regular rite it is,
is a very exciting ceremony. When the suitor comes to pay the dowry
it is customary for him to give his fiancée, it is considered good form
for the parents to shrug their shoulders, and pretend that the sum
offered is not enough; millet is very dear just now, they say, and they
cannot afford wedding festivities worthy of their daughter. They must
keep her at home until after the harvest, and so on.
The young man goes home then with bowed head and a general
air of depression. When he gets back to his own village he calls his
relations and friends together, chooses out the best runners and
those who can shout the loudest, and with them returns to seize the
object of his choice. He finally succeeds in taking her away in the
midst of screams, yells, and the sham curses of her relations, who
are really full of joy at the marriage. The so-called ravishers of the
dusky bride are pursued to the last tents of the village, and the
ceremony concludes, as do all weddings amongst the negroes, with
a feast such as that of Gamache immortalized in Don Quixote.
Soon after this exciting night our relations with Galadio began,
and throughout the winter all our hopes were centred on this man.
We counted on him to the very last moment as our best friend, and
he really was more reasonable than most of those with whom we
had to do during that dreary time. It must not, however, be forgotten
that amongst Mussulmans, especially those of the Fulah race,
wisdom means profound duplicity. The Fulahs actually have no word
to express giving advice, only one which means “give bad advice,” or
“betray by counsel given.” The idea is simple enough, and is the first
which comes into their heads. So that if by any chance they want for
once to translate our expression, “advise you for your own good,”
they have to go quite out of the way to make the meaning intelligible,
and to use a borrowed word. This is really a reflection of the Fulah
character.

TALIBIA.

Galadio was in this respect a thorough Fulah, although he had

Bambarra blood in his veins. His mother was a Fulah, of the Culibaly
tribe, and he deceived us perpetually with good words which meant
nothing. Still I must do him the justice to add, that he was careful to
save us from being involved in open war. Perhaps he saw how fatal
that would be to his own influence, or he may have dreaded it as a
calamity for the country he was now living in, or for the people over
whom he had been set. Anyhow he managed to run with the hare
and hunt with the hounds: in other words, to keep in with Amadu and
us. He always gave us to understand, that if the worst came to the
worst he would at least preserve a strict neutrality, and as a reward
for this he got many very fine presents. He was treated almost as the
equal of Madidu himself, and he too received from us a velvet saddle
embroidered with gold. His messengers were provided with a pass
by us, and were received with all due honour, for it was not until quite
the end of our stay that the mystery was solved, and Galadio
appeared in his true colours. Of his own free will he had concluded a
regular treaty with me, a treaty drawn up quite formally in Arabic and
French, and which he signed with his own name. He showed,
moreover, a very eager wish to enter into relations with Bandiagara.
April 30.—Khalifa is certainly an extraordinary man. To-night he is
to bring to us in a canoe, when the moon is set and all is silence,
darkness, and mystery, no less a person than the brother of the chief
of Say. We watch all night for the signal agreed upon of the
approach of our guests: the lighting of a candle on the bank of the
river, but nothing is to be seen. Was the whole thing simply a
manœuvre on the part of Pullo to get possession of a box of
matches and a candle? Perhaps so, for one of his chief delights
when he is in any of our tents,—and he is very often there,—is to
strike matches one after the other. He is not the only one with this
wasteful habit, Baudry is also afflicted with it, but fortunately we have
a sufficient supply even for such vagaries as this, which really are
very pardonable in the Sudan.
The next day Khalifa and the brother of the chief of Say actually
arrived, after a good deal more fuss and mystery. Even poor little
Arabu, who wanted to sleep in the camp, was sent away, weeping
bitter tears at the thought that his white brothers did not want him.
Very useless were all these precautions, for the brother of the chief
of Say, though perhaps rather more polite, was not a bit more
sincere than he. Our visitor explained that he had come to see us
quite independently, and that his great wish was to make friends with
us. What he really wanted, however, was a bubu and a copy of the
Koran. As his friendship was of a very doubtful quality, we put off
giving the present to another time, when he should have proved his
sincerity by getting us a courier to go to Bandiagara. He went off
promising to see about it.
 We had “big brothers” and “little brothers” ad infinitum, but as
there is no masculine or feminine in the Fulah language, the
Sudanese when they try to speak French muddle up relationships in
a most original manner, without any distinction of sex. Abdulaye said
to us, with no idea that he was talking nonsense, “My grandfather,
who was the wife of the king of Cayor;” and it is no rare thing for one
of our men to bring a young girl to us in the hope of getting a
present, who is really no relation to him at all, telling us, “Captain,
here is my little brother; he has come to say good-morning to you.”
In my journal I find the following note à propos of this confusion of
relationships. The grandson of Galadio, who came to see us, told us
he had come to pay his respects to his grandfather, and I was that
grandfather, because I was the big brother of his other grandfather.
The muddle is simply hopeless, but with it all the natives never lose
their heads, but keep in view the possible present all the time.

GALADIO’S GRANDSON.
 Sunday, May 3.—The day before yesterday some strange news
was brought us by a boy of about fifteen. He had been sent secretly
to us by the Kurteye marabout we had seen when we were on our
way to Say. A horrible plot was being concocted, he said, for Amadu,
remembering the spells of his father, who had been a great magician
at Hamda-Allâhi, had made an infallible charm against us. On some
copy-book paper, which had evidently been taken off our presents,
he had written the most awful curses, imploring Allah seven times
over to exterminate the Kaffirs, as he called us, and having washed
the paper in water he made a goat drink the decoction thus
produced. He then sent that goat to us, thinking we would buy it! But
we were warned in time.
The awful grisgris did, in fact, arrive in camp yesterday in the form
of a black goat. The poor creature did not look as if she were
charged with venom. She was plump not too old, and would make a
first-rate stew.
All our men were, however, afraid to have anything to do with her,
for in their eyes she was indeed a grisgris endowed with unholy
powers by Amadu. The negroes are all superstitious, and their
imagination often quite runs away with them. On the other hand, faith
is sometimes wanting amongst the Mussulmans. Putting on an air of
very great wisdom, therefore, we generously offered two cubits of
stuff, worth about threepence-halfpenny, for the goat filled with spells
against us, and when the trader who had brought her looked
confused, yet almost willing to let us have her at that ridiculous price,
we explained to him emphatically that our own grisgris, the tubabu
grisgris, had revealed to us the black designs of Amadu, and we
intended to have him and his goat taken back to the other side of the
river, manu militari, I very nearly said kicked back.
The Kurteye marabout who had warned us, was evidently a
friend, unless the whole story was made up to get a present from us.
Every evening now regular tornados broke near Say. Up-stream and
down-stream, at Djerma and at Gurma, torrents of rain fell
constantly, and the lightning flashed from every point of the
compass; but, strange to relate, there was no rain at Say itself, and
when there is no rain there is no harvest. The report was now spread
that we had called down on the village the curse of Allah. The other
day Amadu Saturu had publicly recited the Fatiha in the Mosque in
the hope of getting rain to fall, and we were told that in the meeting
of the notables of the place, the Kurteye marabout had got up and
asserted that Say was punished for having given a bad reception to
a man sent from God, in other words, to the chief of our expedition,
and because Amadu had broken his promise and all his solemn
oaths.
Like my uncle Dr. Barth in Sarayamo, I now found myself looked
upon as the bringer of storms. He had also been looked upon as a
marabout saint, and the Fatiha had been recited to him in the hope
that he would open the floodgates of heaven. We, Kaffirs though we
were, would soon in our turn be entreated to remove our interdict on
the rain so much needed.
May 7.—Tierno, after many a discussion, has at last succeeded in
getting us a courier in the person of an ivory merchant from Hombori.
He will take our letters for Bandiagara, an advanced French post of
Massina. Aguibu, king of Massina, and under our protection, had
sent an agent to Hombori, which is on the road there. Our man
would go for 200 francs, 100 payable at Bandiagara and 100 on his
return to us. All, therefore, was for some days excitement and bustle
in our camp. Maps, reports, letters were being rapidly got ready, and
nobody had a moment to spare. Our courier, who did not seem to
feel quite sure of his safety, sent to ask whether during his absence
his family could go to our friend Galadio, who would protect them.
We said yes, of course.
He returned a month later, and said he had not been able to get to
Bandiagara. The Habés, who had risen in revolt, had robbed him
near the village of Dé. He had only escaped with the greatest
difficulty under cover of a tornado, leaving his packet of letters in the
hands of our enemies. We think he romanced a good deal on the
subject, and I fancy that a good search in Amadu Saturu’s camp
would probably result in the discovery of our packet intact, except for
being perhaps gnawed by termites.
 I had some little doubt on the subject, however, and it is thanks to
that doubt that the courier still has his head on his shoulders. I never
saw him again.
May 13.—Great news! We are told by Osman that there are some
white men on the Dori side of the river, but no one knows exactly
how many. Barges full of white men are floating down-stream; they
are now off Ansongo. There is talk of three iron boats like ours; those
in them are all for peace, nothing but peace.
May 16.—Who is our friend Pullo bringing us this morning? Who
is that man with him who looks like a Tuareg, dressed in blue Guinea
cloth, with a grisgris on his head and a spear and javelin in his hand?
He is a Fulah, the foster-brother of Madidu, with his pockets full of
news. Twenty days ago he said he had left his “big brother” to come
to Say and sell four oxen for some of the cloth of the district. One of
these oxen had died, another had been stolen. What a good
opportunity to ask us to give him a bubu to make up for his losses.
Madidu had not known that we were still at Say. Had he done so
he would certainly have sent messengers, perhaps even have come
himself. He or Djamarata would have visited us, for they had gone
down the river as far as Ayoru to chastise Yoba for some want of
respect to us, but I am sure I don’t know what.
Our Fulah had heard a rumour of four white men having come to
trade on the Niger. Madidu had sent two of his blacksmiths to
prepare the way before them, and he had also by this time sent
envoys to Timbuktu to confirm the treaty we had made with him. He
did not know what had become of that treaty, but anyhow he had
returned with his pocket (Heaven only knows the capacity of that
pocket) full of knick-knacks and more than one present for Madidu.
The news of the approach of the barges was confirmed during the
following days, and in my notes I find the following reference to
them:—
May 17.—A man from Auru who had come to Say told us that at
Ansongo there were three hundred armed men and seven or eight
whites who had come in peace, nothing but peace, and were coming