Problem 1:
(i) What is a drawback of Southwest's business model of short, direct flights from a cost perspective?
(ii) What is an advantage of short, direct flights from a revenue perspective?
Problem 2: Explain how and why the Mumbai Dabbawalla system can better exploit scale economies in its delivery operations as compared to UberEATS or Door Dash.
Problem 3: Why did Armadillo de Sorella make a loss in the current year while making a profit last year even though utilization was about the same? What is one simple change to their subscription policy that is likely to restore profitability?
Problem 4: Explain clearly why Uber pursued a switchback experiment rather than an A/B test to evaluate the impact of a 5-minute wait as compared to a 2-minute wait on various performance metrics in Boston?