What sort of commitments would price cooperation require


Problem

Background: Travel-Rx plans to spend $6 million to transform 6 recreational vehicles (rv's) into health labs. The rv's will tour Texas offering a $99 heart-health workup to anybody who wants one. The workup consists of a detailed questionnaire and some basic diagnostics (blood pressure, ultrasound, cholesterol test, etc). Using the information from the questionnaire and the diagnostics, a statistical analysis will determine the customer's risk of a heart "malfunction" in the next year, the next three years, and the next five years. Similar question-based analyses are free online; expensive diagnostic-based analyses are available from doctors; Travel-Rx merges the two. None of the statistical analyses can outperform a coin-flip.

Is there much opportunity for price cooperation in this industry? What sort of commitments would price cooperation require?

Request for Solution File

Ask an Expert for Answer!!
Macroeconomics: What sort of commitments would price cooperation require
Reference No:- TGS03285721

Expected delivery within 24 Hours