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Suppose there are only two types of cars in the used car market q=0 and q=1. Half the cars are q=0 and the other half are q=1. Buyers still cannot tell the quality but they are aware of the quality distribution. Sellers are willing to accept any price p ? 0, but prefer to receive a higher price. If buyers do not know q, then they are willing to pay p=10000*Q+500 where Q is the average quality of the cars in the market. Suppose that sellers can get their car certified by having it tested by a third party. Denote y as the number of certifications.
Let the cost of each certification be $900 for cars of quality q=1 and $4100 for cars of quality q=0. If buyers believe that the certification signals the quality, then they are willing to pay p=10,500 for signal of high quality and p=500 for the signal of low quality. Find the range for the number of certifications (y) such that there is a separating equilibrium. In addition, what will be the price in the pooling equilibrium?
Construct an AON diagram similar to the format used in the Youtube videos found in the commentary using an MS Excel spreadsheet.
Find the average inventory level of the PR-5 watch under this periodic review.
Company that has expanded globally and examine their management system. What are their values as a company? Do these values translate to their global market or are they only affective domestically? Ho they adjust their company to meet the needs of th..
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Coach Bjourn Toulouse led the Big Red Herrings to several disappointing football seasons.
What is the risk of relying too heavily on the typical profiles of international negotitators? Is there a benefit to using these profiles?
Describe the similarities and differences between the ERG Theory and Maslow's Hierarchy. How have you used either of the two theories in daily life? Respond to at least two of your peers for this posting.
What are Gabriel’s duties and has he violated any of them? Can Lauren and the other limited partners vote to remove Gabriel?
Suppose you have just noticed using a PERT technique that the project will exceed the time allotted for the contract and that you may suffer contractual penalities as a result. How would you approach crashing activities in the project to get the proj..
Like the traditional marketplace, the digital market-space offers marketers opportunities to create time, place, form, and possession utility. How do you think internet-enabled technology rates in terms of creating these values?
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