What would a supply and demand analysis suggest

Assignment Help Business Economics

Reference no: EM13861731

Waiting in line. Two hundred people are willing to wait in line to see a movie at a theater whose capacity is one hundred. Denote person i’s valuation of the movie in excess of the price of admission, expressed in terms of the amount of time she is willing to wait, by vi . That is, person i’s payoff if she waits to ti units of time is vi −ti . Each person attaches no value to a second ticket, and cannot buy tickets for other people. Assume v1 > v2 > · · · > v200. Each person chooses an arrival time. If several people arrive at the same time, then their order in line is determined by their index with lower numbered people going first. If a person arrives to find 100 or more people in line, her payoff is zero. Model the situation as a variant of a discriminatory multi-unit auction, in which each person submits a bid for only one unit, and find its Nash equilibrium.1 (a) What would a supply and demand analysis suggest? (b) Will at least 100 people wait in line? (c) Will the highest value people wait in line? I.e., will anyone with an index greater than 100 see the movie? (d) Will people choose to wait different amounts of time? (e) Will anyone that sees the movie wait more than v100? (f) Will anyone that sees the movie wait less than v101?

Reference no: EM13861731

Questions Cloud

Determine what is the morally correct thing for the doctors : An elderly man, James, is murdered. During the autopsy, doctors discover that James was HIV-positive for over twenty years but never developed AIDS, determine what is the morally correct thing for the doctors to do in this situation

When entrepreneurs are investing their own money : When entrepreneurs are investing their own money, how do they decide which projects they should undertake? When political decision-makers allocate the funds of others (taxpayers), how do they decide which projects to support? Explain.

Concepts of opportunity cost and trade-offs : Suppose the U.S. president is attempting to decide whether the federal government should spend more on research to find a cure for lung cancer. He asks you, one of his economic advisors, to prepare a report discussing the relevant factors he should c..

Develop a team presentation for your new client : Develop a team presentation for your new client to show how the existing product can be revamped for next year's product relaunch - Explain the general team process - Include two rules or guiding principles that the team followed in the creative pr..

What would a supply and demand analysis suggest : Waiting in line. Two hundred people are willing to wait in line to see a movie at a theater whose capacity is one hundred. Denote person i’s valuation of the movie in excess of the price of admission, expressed in terms of the amount of time she is w..

If demand of commodity increases with income : If demand of a commodity increases with income,

Normal good-the income and substitution effects : For a normal good, the income and substitution effects

Articles review-human terrrain project : Articles Review-Human Terrrain Project, Write a brief reflection--a few well-thought-out comments--on how these readings inform our understanding of any modern international or global events, situations, or issues

Write report essay about support for post release prisoners : Write a report essay about Support For Post Release Prisoners.

User Account

All Pages