Suppose an electronics company devises a strategy to offer an extended warranty on its products that expires right before the products are most likely to need repair.
The company has two economics consultants. One of them, Juan, says that the company will not sell any of these warranties (at least in the long run), because people will figure out their strategy. The other economist, Fatima, says that the company should do it and that they will earn profits (even in the long run) with this strategy.
Can you characterize these two economists and their different assumptions?