Assignment 3
Q1. A group of 12 consumers are considering whether to connect to a new social network. Consumer 1 has an intrinsic value of $1 for hooking up to the network, consumer 2 has an intrinsic value of $2, consumer 3 has an intrinsic value of $3, and so on up to consumer 12. Each consumer’s willingness-to-pay (WTP) to connect to the network depends on the total number of persons who are connected to it. The exact relationship is described as follows: for each i, consumer i’s willingness-to-pay to connect to the network is i times the total number of persons connected. Thus if 5 people are connected to the network, consumer 1’s willingness-to-pay is $5, consumer 2’s willingness-to-pay is $10 and so on.
[Hint: Create a table similar to part (a), and use it to help you answer the question.]
[Hint: Create a table similar to part (a), and use it to help you answer the question.]
[Hint: Create a table similar to part (a), and use it to help you answer the question.]
Q2. The Customer Information Management Center at Cheung Kong Graduate School of Business in Beijing is organizing its inaugural conference in Marketing. The main purpose of this conference is to present cutting-edge research topics and methodologies to research communities within China so that Chinese academics can learn about what marketing science can bring to the practice of marketing. It also serves as a forum to generate discussions on research issues related to emerging markets and learn about the potential for the application of marketing science in China. The conference provides a platform for professional networking and exchange of ideas, learning and knowledge.
Conference attendees will include both academicians and industry practitioners. If someone would like to present his/her research in the conference, he/she needs to submit a research paper to the conference by a deadline, and the conference committee will select a subset of the submissions for presentation. In order to attend the conference, attendees must register. The registration fees are:
i. Presenters $0 (covered by the conference)
ii. Academic participants $250 (register before May 1, 2012)
$300 (register after May 1, 2012)
iii. Industry participants $400 (register before May 1, 2012)
$500 (register after May 1, 2012)
Note that Industry participants are the people who work for companies.
Explain the following in details:
(a) Why does the conference charge the industry participants more than academic participants? (3 points)
(b) Why is the registration fee lower for early registration? (3 points)
(c) Why does the conference decide NOT to charge presenters anything? (6 points)
Q3. (Road Pricing) Suppose that the government would like to discourage certain percentage of private drivers from using their cars. Assume the following.
(i) Currently, there are 1000 drivers. They all drive round-trip each day.
(ii) Average driving time per one-way trip as a function of the number of drivers is given in Table 1.
(iii) The distribution of monthly income for the current drivers is given in Table 2.
(iv) The opportunity costs of driving per hour = 50% hourly salary during work.
(v) Each driver in Table 2 works 160 hours per month.
(vi) Choice of transport mode is only based on time and cost.
(vii) Gas price and public transportation fare are ignored.
(viii) Drivers only care about traveling time when deciding whether to drive.
(ix) All drivers currently (i.e., before the congestion tax is imposed) save 10 minutes one-way by driving instead of taking public transportation.
(x) If 25% of drivers stop driving, they will use subway. But that will cause more congestion in subway and the travel time in subway will increase by 3 minutes.
Table 1. Number of drivers and average driving time.
Number of drivers
Average driving time per one-way trip (minutes)
250
15
300
15
500
20
750
30
950
40
1000
45
Table 2. Income distribution of the drivers.
Monthly income ($)
Percentage of the current drivers (%)
< 1,000
10
1,000 – 1,999
15
2,000 – 2,999
25
3,000 – 3,999
25
4,000 – 4,999
15
5,000 – 7,000
10
Why Work with Us
Top Quality and Well-Researched Papers
We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.
Professional and Experienced Academic Writers
We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.
Free Unlimited Revisions
If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.
Prompt Delivery and 100% Money-Back-Guarantee
All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.
Original & Confidential
We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.
24/7 Customer Support
Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Our Services
No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.
Essays
No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.
Admissions
Admission Essays & Business Writing Help
An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.
Reviews
Editing Support
Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.
Reviews
Revision Support
If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.