There are 1001 used car sellers, and Let's say the value they give is $0, $100,...

There are 1001 used car sellers, and Let's say the value they give is $0, $100, $200, $300, ... , $9900, $ 10000(that is, their willing price).

There are many buyers who value each car higher than its current owner. For example, a car worth $3700 to a seller is worth $4700 to a buyer. In this case, obtain a balanced price. In other words, look for a price from the buyer's point of view that they think they deserve to buy based on information about the seller they have.

Expert Solution

Rahul Sunny answered 8 months ago

Consider a market for used cars. There are 100 sellers and 100 buyers. The sellers know...

Consider a market for used cars. There are 100 sellers and 100 buyers. The sellers know the qualities of their cars, but the buyers only know that the quality θ of each used card is uniformly distributed over interval [0, 1]. The seller’s value of a car with quality θ is θ. (Thus, market supply is S(p) = 100p for 0 ≤ p ≤ 1 and S(p) = 100 for p > 1.) Each of 50 buyers values a car...

Consider the market for used cars and let X = value of the car. Sellers know...

Consider the market for used cars and let X = value of the car. Sellers know the value of the car they sell and their utility is U(X) = X. Buyers only know that car value is uniformly distributed on (50,150) and their utility is 1.5×X. Suppose the posted price for used cars is 90. Will consumers buy a car at this price? Explain.

In a used cars market, there are many car sellers with even larger number of car...

In a used cars market, there are many car sellers with even larger number of car buyers. A car priced at 800 is considered high quality to the seller, a car at 200 is considered low quality to the seller. To a buyer, for any quality of a car, the value to the buyer is x times the value to the sellers. x>1. Sellers have information about the quality of their own car, whereas buyers know 2/3 of cars are...

Let's say you have a bag of 100 marbles. There are an equal number of five...

Let's say you have a bag of 100 marbles. There are an equal number of five different colors. You are curious to know what the probability would be if you dipped your hand in and grabbed out 5 of the same color marble. In this scenario, the underlying success rate = _______. **Please show work!

There are many sellers of used cars. Each seller has exactly one used car to sell...

There are many sellers of used cars. Each seller has exactly one used car to sell and is characterised by the quality of the used car he wishes to sell. The quality of a used car is indexed by θ, which is uniformly distributed between 0 and 1. If a seller sells his car of quality θ for price p, his utility is p − θ2. If he does not sell his car, his utility is 0. Buyers of used...

Used car market, we have sellers who only sell good cars and sellers who sell lemons....

Used car market, we have sellers who only sell good cars and sellers who sell lemons. Value Seller buyer Good car 1500 2000 Lemon 600 400 If you are a good car dealer and successfully sold a good car, what is the profit? Under symmetric information, will the lemon owner be able to make profits? Under asymmetric information, the only information buyers have is there are 50% bad cars and 50% lemons in the market. For a risk neutral buyer,...

The titration process is used to analyze the content of some food product. Let's say you...

The titration process is used to analyze the content of some food product. Let's say you are analyzing the concentration of acetic acid in the vinegar. Answer the following question: • What would you categorize the vinegar, an acid or a base? You have 5 mL of vinegar in a flask and 2 drops of phenolphthalein indicator. You titrate exactly 36.9 mL of 0.1 mol/L NaOH from a burette directly into the flask which gives you a pale pink color....

Let's say someone were to give you a sorted list of P elements that were followed...

Let's say someone were to give you a sorted list of P elements that were followed by f(P) = O(sqrt(P)) randomly ordered elements. Please show how you would sort the whole list? In the c++ language, please show and describe.

Let's say that we have two variables X and Y. We calculate their correlation value to...

Let's say that we have two variables X and Y. We calculate their correlation value to be r = -.8012. What is the interpretation of this value?

Consider a local used car market with an unlimited number of buyers, 50 sellers of high-quality...

Consider a local used car market with an unlimited number of buyers, 50 sellers of high-quality cars, 30 sellers of medium-quality cars and 20 sellers of low-quality cars. Each seller offers up to 1 car for sale. Sellers of high-quality cars value their car at $15,000, sellers of medium-quality cars at $7,000, and sellers of low-quality cars at $3,000. Buyers value high-quality cars at $20,000, medium-quality cars at $10,000, and low-quality cars at $5,000. Answer the following questions according to...

Question