Questions from Managerial Economics

Q: At a student café, there are equal numbers of two types

At a student café, there are equal numbers of two types of customers with the following values. The café owner cannot distinguish between the two types of students because many students without early...

Q: In the text, we considered a sequential-move game in

In the text, we considered a sequential-move game in which an entrant was considering entering an industry in competition with an incumbent firm (Figure 15-1). Consider now that the entrant, if fought...

Q: Mr. and Mrs. Ward typically vote oppositely in elections and

Mr. and Mrs. Ward typically vote oppositely in elections and so their votes “cancel each other out.” They each gain two units of utility from a vote for their positions (and lose two units of utility...

Q: Suppose Mr. and Mrs. Ward agreed not to vote in

Suppose Mr. and Mrs. Ward agreed not to vote in tomorrow’s election. Would such an agreement improve utility? Would such an agreement be an equilibrium?

Q: Microsoft and a smaller rival often have to select from one of

Microsoft and a smaller rival often have to select from one of two competing technologies. The rival always prefers to select the same technology as Microsoft (because compatibility is important), whi...

Q: The below figure represents the potential outcomes of your first salary negotiation

The below figure represents the potential outcomes of your first salary negotiation after graduation:

Q: Every year, management and labor renegotiate a new employment contract by

Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator who chooses the best proposal (effectively giving one side or the other $1 million)....

Q: Pharmaceutical Benefits Managers or PBMs are intermediaries between upstream drug manufacturers and

Pharmaceutical Benefits Managers or PBMs are intermediaries between upstream drug manufacturers and downstream insurance companies. They design formularies (list of drugs that insurance will cover) an...

Q: Your pharmaceutical firm is seeking to open up new international markets by

Your pharmaceutical firm is seeking to open up new international markets by partnering with various local distributors. The different distributors within a country are stronger with different market s...

Q: Two equal-sized newspapers have overlap circulation of 10% (

Two equal-sized newspapers have overlap circulation of 10% (10% of the subscribers subscribe to both newspapers). Advertisers are willing to pay $10 to advertise in one newspaper but only $19 to adver...