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Explain why this behavior is not consistent. What do you conclude about how people make decisions concerning uncertain events?
If the probability were as high as the frequency in 2001, 0.00000077, what would be a fair price?
Employees also spent work hours watching parts of games on the Internet. Is this productivity loss an example of a negative externality? Explain.
Analyze the following statement. Is garbage a positive or negative externality? Why is a market solution practical here?
Do such positive externalities lower social welfare? If not, why not? If so, what could the teams do to solve that problem?
What alternative approaches could be used to achieve the same goals? What are the advantages and disadvantages of a ban relative to the alternatives?
Evaluate the efficiency and welfare implications of the proposed law taking account of externalities.
In 2002, northern Victoria, Australia, imposed a vomit tax on pubs in Greater area. Discuss the pros and cons of using such a tax to deal with this externality.
Explain how this example illustrates the problem of public goods and free riding.
Vaccinations help protect the unvaccinated from disease. Boulier et al. (2007) find. If so, what might the government do to protect society optimally?
What is the minimum price the traveler can offer the family not to travel in first class?
The government imposes a tax equal to the marginal harm from the pollution on the monopoly producer. Show that the tax may raise welfare.
The state of Connecticut announced that commercial fleet operators would get a tax. Is this approach likely to be a costeffective way to control pollution?
What would be the government's optimal policy if it can predictably control pollution and hence temperature?
Are heavily used bridges, such as the Bay Bridge, Brooklyn Bridge, and the Golden Gate Bridge commons? If so, what can be done to mitigate externality problems?
Show in your graph the optimal s that leads to the socially optimal outcome for the two stores.
How do we know that winners from trade can compensate losers and still have enough left over to benefit themselves?
What is the marginal external cost of the purchase? What is the sum of each person's value on his or her place in line in the Nash equilibrium?
Analyze the most significant economic effects of the researched issues on healthcare industry.
The Federal Trade Commission objected to the California Dental Association's prohibitions. What effect should such restraints have on equilibrium prices?
The "Twin Brands" application notes that an auto manufacturer may sell a luxury model for much more than another model. Is the firm a noisy monopoly?
Explain how a monopoly firm can price discriminate by advertising sales in newspapers or magazines that only some of its customers see. Is it a noisy monopoly?
Why do advertising and free meals taint the credibility of Gault Milleau? Discuss the moral hazard problem of Gault Milleau's ratings.
Why do insurance companies use home addresses? What are the efficiency and equity implications of forbidding such practices?
It finds that some people buy only milk there and do their other grocery shopping elsewhere. Is that an example of adverse selection or moral hazard?