Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Steven and Joe are roommates in a cramped apartment, and they're increasingly getting on each other's' nerves. Steven is vegan, a smoker, and extremely hygienic. Joe is an omnivorous asthmatic. The two ended up as roommates only because the supply of similar-quality two-bedroom apartments in Manhattan is extremely tight, and neither is wealthy enough to afford to live without a roommate. Unable to reconcile their differences, they have hired a roommate counselor to recommend ways of ameliorating their disputes. Here are the facts: Joe experiences difficulty breathing when Steven smokes indoors. The loss to Joe in dollars of living in a smoky apartment is $20,000. Steven has the option of smoking on the fire escape (in which case, Joe would not be affected by the smoke). Steven, is of frail constitution and prefers not to do this for fear of catching a cold in the winter. Steven's loss from smoking on the fire escape in dollars is $12,000. Either party also has the option to break the lease and move out. The leaver would be responsible for his share of the rest of the year's rent ($15,000) if he didn't find a substitute roommate, and $0 if he did. Whoever moves out, the probability that he will be able to find a replacement roommate is 0.8. Moving out also imposes (certain) relocation and apartment search costs of $10,000 on the mover. Another solution is that the apartment could be subdivided with a wall down the middle and a second kitchen and bathroom installed. Subdivision costs $11, 000 and requires the consent of both roommates. Assume the subdivision would completely eliminate the externality. a. What are the parties' threat values if Steven enjoys the legal right to smoke indoors and Joe cannot convince Steven to accept a subdivision of the apartment? b. Same question, but now Joe has the legal right to clean air. c. Identify the socially efficient solution (assuming sub division is possible). d. Suppose both parties expected a court to rule in favor of Joe, were they to litigate. Write down a model of how their bargaining might proceed under this assumption (assuming now that subdivision is possible). Include the threat values, cooperative solution, cooperative surplus, and the surplus's possible divisions between the two parties. e. Suppose now that transaction costs of bargaining are extremely high. Perhaps the roommate counselor's rates are excessive, or animosity between Steven and Joe is so great that they cannot sit down at the same table. Suppose, in addition that neither will agree to a subdivision of the apartment, and that the judge is unwilling to impose one. What is the efficient legal ruling in this scenario?
consider the market for smart-phones with two dominant players applea iphone4s and samsungs galaxy. these smart phones
Suppose that you value a hat from your favorite university at $20. The university bookstore has the hat on sale for $15. You purchase the hat but lose it on the way home. What should you do? Assume that losing the hat does not alter how you value it.
How would you value the goodwill that is obtained in this way? Think about an example that pertains to you. If there is expected goodwill would you be prepared to bid lower to get a contract?
The depreciation schedule for a machine has been arrived at by several methods. The estimated salvage value of the equipment at the end of its 6-year life is $600. Identify the resulting depreciation.
Economists often stress that congestion helps account for the law of the diminishing returns.With this in mind, list and explain related increasing costs caused by traffic jam in Ho Chi Minh City, Vietnam
Calculate both Macaulay and modified durations of the 8-year, 8.5% coupon bond given a flat yield curve at 10% and explain why zero coupon bonds have a higher Macaulay Duration than coupon paying bonds of the same return.
healthcare servicesresearch an industry where there has been a pattern of change in a particular market model monopoly
In a survey on downloading music, a poll asked 705 internet users if they "ever downloaded music from an internet site that was not authorized by a record company, or not" and 15 percent responded "yes." Construct a 99 percent confidence interval for..
suppose that society decided to reduce consumption and increase investment. How would this change affect economic growth What groups in society would benefit from this change what groups might be hurt
Elasticity of demand for each of the following showing all calculations and
assume that you have been appointed as the speaker of the house. you must deliver a speech about the current state of
A long-run supply curve is flatter than a short-run supply curve because firms can enter and exit a market more easily in the long run than in the short run is it true or false.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd