fundamental attributes of duopoly markets differentiated products
Order ID 53563633773 Type Essay Writer Level Masters Style APA Sources/References 4 Perfect Number of Pages to Order 5-10 Pages Description/Paper Instructions
1. Hotellings Beach example 15.5, pp 544-545 of N&S
The simple, elegant model of ice cream sellers on a beach illustrates fundamental attributes of duopoly markets with products that are not quite identical (differentiated products). Think of automobiles, breakfast cereals, toothpaste, colas. (Those are not duopoly markets, but they are oligopolies markets with several firms, but not many firms.)
To restate the example for anyone who does not have access to the textbook, there is a beach of length L, with two ice cream sellers A and B. In the model, a and b represent the ice-cream cart locations along the line segment 0 L chosen by those sellers.
Assume that customers (beach-goers) are uniformly distributed along the beach, one at each unit of length. They buy ice cream and carry it back to their location (to their beach umbrella). Each customer bears a cost pi + td2, where i is either a or b (depending on which seller they buy from), and the term td2 refers to how the ice cream melts as a function of temperature t and the square of the distance d from cart to beach umbrella.
Finally, let x be the location of the consumer whos indifferent between buying from A or B. (And by convention, let seller A be to the left of seller B, so that all of As customers are located from 0 to x, and all of Bs are located from x to L.)
a. Easy: Why is this the equilibrium condition?
PA + t(x a)2 = pB + t(b x)2
b. Also easy: Show that
x = (b + a)/2 + (pB pA)/(2t(b a)c. Easy: Explain how the location of this indifferent buyer is affected by the price pa versus pb.
d. Easy: The equation given above is seller As demand curve qA(pA, pB, a, b). Explain why seller
Bs demand curve is given by
qB(pA, pB, a, b) = L – (b + a)/2 – (pB pA)/(2t(b a)e. Solve for the Nash equilibrium, showing that
p*A = (t/3)(b a)(2L + a + b), and p*B = (t/3)(b a)(4L – a – b)f. Using N&Ss values for length of beach L=100m and the temperature cost t = 0.1¢ = $0.001, what will the equilibrium prices p*A and p*B be if the sellers are (roughly) at opposite ends of the beach, with a at 20 meters and b at 75 meters? (Before you solve this, see if you can predict who will have the higher price.)
Hotellings Beach, concluded
g. Where will the indifferent customer be located, given those values of a and b?h. Intuitively, why are seller profits higher if the temperature cost t is higher (meaning, if the ice cream melts faster at any given temperature).
Seller profits are given by
p*A = (t/18)(b a)(2L + a + b)2 and
p*B = (t/18)(b a)(4L – a – b)2i. Answer the authors queries at the end of the example:
What happens to prices and profits if the ice cream stands locate in the same spot?
What happens to prices and profits if the stands locate at the opposite ends of the beach?j. If you were one of the ice cream sellers and you arrived at the beach before your rival, where would you locate, and why? (Think of the video.)
///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////2. Read the two short articles below (after the statement of this problem), on Should Robots be Taxed (one is by Tyler Cowen, the other by Larry Summers both top economists, both terrific and engaging writers) and briefly answer the following questions.
a. Cowen says that a tax on robots would cause a bigger shift away from robots the more elastic the demand is for robot labor. Using a pair of simple supply/demand graphs like the one below, illustrate the point he is making.
b. Summers suggests that instead of taxing robots, we might subsidize them. What reason does he give, and what is one example he provides?
c. Summers agrees that robots may be contributing to job destruction and rising inequality. Yet he also says that staving off progress [slowing or preventing it] by taxing robots would be a bad way to help workers whose jobs have been destroyed. Why does he think it would be better to subsidize the wages of affected workers and to invest in infrastructure and education? (The answer relates to the most fundamental of the three reasons Summers gives for not taxing robots.)
RUBRIC
QUALITY OF RESPONSE NO RESPONSE POOR / UNSATISFACTORY SATISFACTORY GOOD EXCELLENT Content (worth a maximum of 50% of the total points) Zero points: Student failed to submit the final paper. 20 points out of 50: The essay illustrates poor understanding of the relevant material by failing to address or incorrectly addressing the relevant content; failing to identify or inaccurately explaining/defining key concepts/ideas; ignoring or incorrectly explaining key points/claims and the reasoning behind them; and/or incorrectly or inappropriately using terminology; and elements of the response are lacking. 30 points out of 50: The essay illustrates a rudimentary understanding of the relevant material by mentioning but not full explaining the relevant content; identifying some of the key concepts/ideas though failing to fully or accurately explain many of them; using terminology, though sometimes inaccurately or inappropriately; and/or incorporating some key claims/points but failing to explain the reasoning behind them or doing so inaccurately. Elements of the required response may also be lacking. 40 points out of 50: The essay illustrates solid understanding of the relevant material by correctly addressing most of the relevant content; identifying and explaining most of the key concepts/ideas; using correct terminology; explaining the reasoning behind most of the key points/claims; and/or where necessary or useful, substantiating some points with accurate examples. The answer is complete. 50 points: The essay illustrates exemplary understanding of the relevant material by thoroughly and correctly addressing the relevant content; identifying and explaining all of the key concepts/ideas; using correct terminology explaining the reasoning behind key points/claims and substantiating, as necessary/useful, points with several accurate and illuminating examples. No aspects of the required answer are missing. Use of Sources (worth a maximum of 20% of the total points). Zero points: Student failed to include citations and/or references. Or the student failed to submit a final paper. 5 out 20 points: Sources are seldom cited to support statements and/or format of citations are not recognizable as APA 6th Edition format. There are major errors in the formation of the references and citations. And/or there is a major reliance on highly questionable. The Student fails to provide an adequate synthesis of research collected for the paper. 10 out 20 points: References to scholarly sources are occasionally given; many statements seem unsubstantiated. Frequent errors in APA 6th Edition format, leaving the reader confused about the source of the information. There are significant errors of the formation in the references and citations. And/or there is a significant use of highly questionable sources. 15 out 20 points: Credible Scholarly sources are used effectively support claims and are, for the most part, clear and fairly represented. APA 6th Edition is used with only a few minor errors. There are minor errors in reference and/or citations. And/or there is some use of questionable sources. 20 points: Credible scholarly sources are used to give compelling evidence to support claims and are clearly and fairly represented. APA 6th Edition format is used accurately and consistently. The student uses above the maximum required references in the development of the assignment. Grammar (worth maximum of 20% of total points) Zero points: Student failed to submit the final paper. 5 points out of 20: The paper does not communicate ideas/points clearly due to inappropriate use of terminology and vague language; thoughts and sentences are disjointed or incomprehensible; organization lacking; and/or numerous grammatical, spelling/punctuation errors 10 points out 20: The paper is often unclear and difficult to follow due to some inappropriate terminology and/or vague language; ideas may be fragmented, wandering and/or repetitive; poor organization; and/or some grammatical, spelling, punctuation errors 15 points out of 20: The paper is mostly clear as a result of appropriate use of terminology and minimal vagueness; no tangents and no repetition; fairly good organization; almost perfect grammar, spelling, punctuation, and word usage. 20 points: The paper is clear, concise, and a pleasure to read as a result of appropriate and precise use of terminology; total coherence of thoughts and presentation and logical organization; and the essay is error free. Structure of the Paper (worth 10% of total points) Zero points: Student failed to submit the final paper. 3 points out of 10: Student needs to develop better formatting skills. The paper omits significant structural elements required for and APA 6th edition paper. Formatting of the paper has major flaws. The paper does not conform to APA 6th edition requirements whatsoever. 5 points out of 10: Appearance of final paper demonstrates the student’s limited ability to format the paper. There are significant errors in formatting and/or the total omission of major components of an APA 6th edition paper. They can include the omission of the cover page, abstract, and page numbers. Additionally the page has major formatting issues with spacing or paragraph formation. Font size might not conform to size requirements. The student also significantly writes too large or too short of and paper 7 points out of 10: Research paper presents an above-average use of formatting skills. The paper has slight errors within the paper. This can include small errors or omissions with the cover page, abstract, page number, and headers. There could be also slight formatting issues with the document spacing or the font Additionally the paper might slightly exceed or undershoot the specific number of required written pages for the assignment. 10 points: Student provides a high-caliber, formatted paper. This includes an APA 6th edition cover page, abstract, page number, headers and is double spaced in 12’ Times Roman Font. Additionally, the paper conforms to the specific number of required written pages and neither goes over or under the specified length of the paper. GET THIS PROJECT NOW BY CLICKING ON THIS LINK TO PLACE THE ORDER
CLICK ON THE LINK HERE: https://www.perfectacademic.com/orders/ordernow
Also, you can place the order at www.collegepaper.us/orders/ordernow / www.phdwriters.us/orders/ordernow
Do You Have Any Other Essay/Assignment/Class Project/Homework Related to this? Click Here Now [CLICK ME] and Have It Done by Our PhD Qualified Writers!!