Social Stratification - 1747 Words

Casey Rash, Austin Helms November 11, 2010 SOC 100 General Sociology; 002 Essay Question: 3 The purpose of this paper will be to address what social stratification is, and why sociologists consider it crucial to our understanding of today’s society. In addition it will also be discussing the three dimensions of social stratification and how we think its changed since the 1970s and 80s to today, and which theory we think best explains this change. Along with how the inequality of valued resources impacts America as a whole, and how the recent financial meltdown has made stratification worse in America. Stratification can be defined as a structured ranking of entire groups of people that perpetuates unequal economic rewards and†¦show more content†¦The African American middle class has risen since the 1970s and 80s although they are still being paid less than the while males which shows progress since the civil rights movement. In comparison a 2004 study shows that the Latino population is loosing its hold on wealth only controlling 10% of the wealth in the U nited States. Karl Marx’s theory on stratification best justifies the change the United States has faced from the 1970s to present day. Karl Marx’s theory focuses on capitalism in which the owner of a company’s only goal is to produce as much profit as possible for him or herself. The bourgeoisie or capitalist class owns the company and the proletariats work for the company. The bourgeoisie look for ways to lower wages and maximize profit by adding machines that reduced dependence on highly skilled proletariats. This makes no proletariats special because they are easily replaceable. This best explains the change from the 1970s and 80s to now because all the name brand companies are outsourcing and making the product cheaper to make which is giving the owner of the companies more money and taking jobs away from the middle class and working class therefore making the rich richer and poor poorer. The rich stay in power because the working class is forced to work at the wages offered because the job positions require very little skill and are easily replaceable making it impossible to move up in the company. Without questionShow MoreRelatedStratification, Stratification And Social Structure Essay1413 Words   |  6 PagesIn our daily social life, when people meeting together whether with a stranger or a friend, they are likely to classify others by a certain category of characteristics consciously or unconsciously. However, making categories not only applies to individual life, also societies have categories, as what the sociologists called stratification. Stratification which divides people according to social structures refers to bigger areas of factor including gender, age, ethnicity, family lineage, economicRead MoreEssay about Social Stratification 1554 Words   |  7 Pagesclass that you are born into will determine the life chances you ultimately have for the rest of your life. Australian society is highly based upon the concept of so cial stratification which â€Å"refers to the division of the population of a society into strata arranged in a hierarchy† (Aspin, Lois J., 1996: page 39) Sociologists study the social world through paradigms, which are theoretical frameworks such as functionalism and conflict theory. The way that they view society is through these paradigms inRead MoreSocial Stratification1648 Words   |  7 PagesSocial stratification defines any structure of inequality that persists in a society across generations. Social strata are groups of people — who belong to the same social class or have the same social level. Social strata are organised in a vertical hierarchy. In the early societies people shared a common social standing. In the hunting and gathering societies there was little stratification: men hunted for meat while women gathered edible plants. The general welfare of the society depended on theRead MoreSocial Stratification1358 Words   |  6 Pagesï » ¿SOCIAL SCIENCE 101 (Society and Culture with Population Education) Unit IV. Social Stratification Meaning of Social Stratification When sociologists speak of stratification, they are referring to social inequality and social ranking, thus, stresses the differences among people. Is an institutionalized pattern of inequality in which social categories ranked on the basis of their access to scarce resources. Is the hierarchy arrangement and establishment of social categories that evolveRead MoreSocial Stratification864 Words   |  4 PagesSOCIAL STRATIFICATION AND SOCIAL MOBILITY IN THE CARIBBEAN Presenter Ms. N. Lewis What is social Stratification? ï  ¬ This refers to the ranking of social groups according to one or more criteria deemed important to society. ï  ¬ The ranking indicates that some groups have more and others have less of what society values- for example, money, power and prestige. Types of stratification Systems There are two types of stratification systems: 1. Closed system of stratification 2. Open system of stratificationRead MoreClass Stratification And Social Stratification1485 Words   |  6 PagesQ. ‘Class stratification is no longer relevant in explaining equality in the U.K. today.’ A. Class stratification runs on 3 main points: Power (legal ability, capacity or authority granted on a person/persons), Prestige (a reputation or influence arising from success) and Privilege (a special right or immunity) with these being the root of social stratification it’s easy to see why inequality in universal with the bourgeoisie (the elite 2% of the world) controlling the proletariat (working classRead MoreSocial Stratification : Functional Theory, And Conflict Theory1091 Words   |  5 PagesDoes Social Stratification Have a Functional Purpose in Society Social Stratification is considered to be a hierarchy of positions concerning economic production which influences the social rewards to those in the positions (Social Stratification, Definition Social Stratification, n.d.). There are two commonly known theories when it comes to social stratification, the functional theory, and the conflict theory. The functionalist believes that stratification is needed for society to enhance stabilityRead MoreThe Concept Of Social Stratification893 Words   |  4 PagesThe concept of social stratification is quite complex. It involves categorizing a person into socioeconomic levels based upon one’s profession, wealth, social status, and perceived power. Such a stratification makes up a social hierarchy, which involves placing groups of people in a higher standing than another group, with fewer people being included into the ‘higher’ classes. These concepts were not always apparent, only developing as result of human influence. Using Sumer and Uruk as examples,Read MoreThe Origin of Social Stratification5566 Words   |  23 PagesINTRODUCTION Social stratification is rigid subdivision of society into a hierarchy of layers, differentiated on the basis of power, prestige and wealth. It is the hierarchical arrangement of people in a society. Stratification is common in the animal kingdom on the basis of power and gender and some form of stratification has probably always existed among humans. With the development of food and other surpluses resulting from technological advances in agriculture and manufacturing, some peopleRead MoreSystems of Social Stratification2682 Words   |  11 Pagessystems of social stratification. The main aim of this essay is to compare and contrast these systems as well as indicating their advantages and disadvantages to development. The essay begins with defining the key terms which include comparing, contrasting and development. It further goes on to define as well as explain social stratification itself, the caste, the class and the colour-bar systems respectively. The essay further talks about the advantages and disadvantages of these systems of social stratification

A Rose For Emily By William Faulkner - 916 Words

Society must come up with a different way of judging people. The amount of people that get judged without fully understanding someone is unreal. People have their own experiences throughout their lives that makes them different, and society must come to terms in understanding everyone before they judge. In the short story â€Å"A Rose for Emily†, written by William Faulkner, people within the town attempted to understand Miss Emily’s struggles and tried to judge her accordingly. Throughout the story Miss Emily Grierson struggled as a developing character with many internal conflicts. One of Miss Emily’s biggest internal conflict came from her attachment to her father. The story states how Miss Emily’s father drove away all the young men interested in her. This allows readers to assume the only other person Miss Emily had any type of personal relationship with was her father. After his death Miss Emily went into a state of shock, and the villagers understood how she felt. However, the death of Miss Emily’s father had a much greater impact on her character than the villagers thought. She would never fully feel that type of personal relationship again in her sad life, and that changed her outlook on life forever. Another incident in her life that sparked more internal conflict for Miss Emily was when her sweetheart abandoned her. Miss Emily’s sweetheart got mentioned once throughout the story, but his impact was immense. The townspeople believed the two would getShow MoreRelatedA Rose For Emily By William Faulkner923 Words   |  4 PagesA Rose for Emily; A Tale of The Old South William Faulkner was born in New Albany, Mississippi in 1897 but lived most of his life in Oxford, a small town nearby. After dropping out of high school then briefly joining the Canadian Air Force, he returned home and completed three terms at the University of Mississippi (Fulton 27). During his early twenties Faulkner spent time in New Orleans and Europe before returning to Oxford and publishing his first book of poems. In 1929 he married Estelle FranklinRead MoreA Rose For Emily By William Faulkner1729 Words   |  7 PagesJune 24, 2015 â€Å"A Rose for Emily† In every neighborhood there is always that one house that is a mystery to everyone. A house that everyone wants to know about, but nobody can seem to be able to dig up any answers. It’s the type of place that you would take any opportunity or excuse to get to explore. The littler that is known, the more the curiosity increases about this mysterious place or person. In the short story â€Å"A Rose for Emily† by William Faulkner, this mysterious person is Emily Grierson, andRead MoreA Rose For Emily By William Faulkner949 Words   |  4 PagesIn William Faulkner’s â€Å"A Rose for Emily† it is clear how Emily’s gender affects how the individuals in the town perceive her. Emily’s gender particularly affects how men understand her. Throughout the whole piece Emily is seen as a helpless individual who is lonely and has suffered losses throughout her life. When the reader reaches the end of the story the actions that Emily has taken is unexpected because of the way she is perceived by the narrator. In the beginning of the story, when the wholeRead MoreA Rose For Emily By William Faulkner1577 Words   |  7 Pagesâ€Å"A Sarah Markins Dr. Bibby ENG 107 February 11, 2015 â€Å"A Rose for Emily† by William Faulkner â€Å"A Rose for Emily†, written by William Faulkner in 1931, follows a series of peculiar events in Miss Emily Griersons life. Written in third person limited, Faulkner utilizes flashbacks to tell of the period between the death of Emily’s father and her own passing. Split into five short sections, the story starts out with the townspeople of Jefferson remembering Emily’s legacy and how each new generation ofRead MoreA Rose For Emily By William Faulkner1552 Words   |  7 PagesRyan Dunn Mrs. Williams English 11 March 11, 2016 In the short story â€Å"A Rose for Emily† by William Faulkner, the reader is given a glimpse of the internal conflict of the main character, living in the past, and the involvement of an over involved society causing the reader to look into the consciousness of an individual haunted by a past and lack of a future. The story is set in a post-Civil War town in the South. He is able to give the reader a glimpse of the practices and attitudes that had unitedRead MoreA Rose For Emily By William Faulkner1507 Words   |  7 Pages1897, William Cuthbert Faulkner was born in New Albany, Mississippi. He stands as one of the most preeminent American writers of the twentieth century. His literary reputation included poetry, novels, short stories, and screenplays. Faulkner won two Pulitzer Prizes for Fiction and the Nobel Prize in Literature. â€Å"A Rose for Emily† is a short fascinating story written by William Faulkner and it was his first short story published in a national m agazine. The story involved an old woman named Emily GriersonRead MoreA Rose For Emily By William Faulkner883 Words   |  4 PagesIn the timeless classic, â€Å"A rose for Emily† by William Faulkner we are introduced to Emily Grierson, a matured sheltered southern woman; born to a proud, aristocratic family presumably during the American Civil War. Through out the short story William Faulkner uses many literary devices such as symbolism, metaphors and allegory to play with â€Å"time† and how time reflects upon his main character Emily Grierson. Emily being one who denies the ability to see time for what it is linear and unchangeableRead MoreA Rose For Emily By William Faulkner1270 Words   |  6 PagesWilliam Faulkner’s short story â€Å"A Rose for Emily† thoroughly examines the life of a strange woman name Emily Grierson who lives in the town of Jefferson. If we examine â€Å"A Rose for Emily† in terms of formalist criticism, we see that the story dramatizes through setting, plot, characterization, and symbolism on how Miss Emily’s life is controlled by a possessive love she had for her father and lover. William Faulkner uses Emily’s life as the protagonist to examine from a formalist aspect. In orderRead MoreA Rose For Emily By William Faulkner1780 Words   |  8 PagesIn 1930, William Faulkner wrote a five-part story entitled â€Å"A Rose for Emily† that follows the life of a young woman named Miss Emily Grierson. Faulkner sets his story in the Old South, soon after the ending of America’s Civil War, and represents the decaying values of the Confederacy (Kirszner Mandell, 2013a, p. 244). One of these values which the text portrays quite often in â€Å"A Rose for Emily†, is the patriarchal custom of society viewing men as having more importance than their female counterpartsRead MoreA Rose For Emily By William Faulkner1277 Words   |  6 PagesMiss Emily Grierson, the main character in the strange short story â€Å"A Rose for Emily† written by William Faulkner. It would be best to examine her in a mental capacity as well as the circumstances that may affect her. Throughout the story, Miss Emily’s unpredictable and eccentric behavior becomes unusual, and the reader, like the townspeople in the story, is left to speculate how Miss Emily has spent years living and sleeping with the body of Homer Barron. An important quote from the story was that

The Conflict Between Israelis And Palestinians - 1686 Words

Erin Shin Combs English 1-2 Acc., P. 1 18 April 2016 The Conflict Between Israelis and Palestinians On July 14, 2014, Mohammed Suliman, a Muslim living in Gaza City, tweeted, â€Å"Amir, 12, and Mohammed. 10, want to buy yogurt. Things are calm, they tell their mom. They leave the house. A blast is heard. They re dead† (Hosford). Tragic though it is, this is not a rare phenomenon in this region. In fact, 2,314 Palestinians were killed and 17,125 injured just in 2014 alone as a result of Israel’s activities in the Gaza Strip, West Bank, and East Jerusalem, according to the annual report by the UN Office for the Coordination of Humanitarian Affairs (OCHA). Because of the unfair treatment of Palestinians, the situation in Israel/Palestine is a human rights conflict. To further understand this conflict, one must first know how it began. In 1948, the country of Israel was formally created. Technically speaking, this would be the origin of this conflict, but some scholars think it began earlier. They believe it was a result of the Jewish exiles in ancient times when the land was conquered by the Romans. The land was then taken over by Arabs, who are still found there today. Jews had several reasons for immigrating to Palestine. Firstly, in the late 19th century, Jews created a movement to migrate back to the Holy Land, ignoring the fact that the area was already occupied by Palestinians. As a result, conflicts over who had rights to the land arose. Great Britain was in control ofShow MoreRelatedThe Causes for the Conflict between Palestinians and Israelis3432 Words   |  14 Pagesï » ¿Conflict Between Palestinians and Israelis;The Cause Against a backdrop of an ever increasing number of internal conflicts and the crash of conventional means of conflict resolution to attain a resilient peace in divided societies, this paper presents a two-track approach to peacekeeping and conflict resolution. One track is represented by  peacemaking,  defined as endeavors at finding a resolution to the issues in conflict at the political leadership level. The other track,  peacebuilding,  refersRead MoreThe Israeli Palestinian Conflict Between Islam And Judaism1437 Words   |  6 Pagesoriginated from Palestine. My grandparents met, married, and had children in our home country. We frequently read about the Israeli-Palestinian conflict in the news and many of us remain oblivious to the realities of the situation and events in that region. My grandparents, however, have lived it. My grandfather is a Muslim while my grandmother is a Jew. To put the Israeli-Palestinian conflict into perspective, interfaith marriage or Jewish-M uslim relations in the past and until today, to some extent, wereRead MoreA Brief Note On The Palestinian Conflict Of The Palestine Conflict1732 Words   |  7 Pagesone-state solution is the only solution to the Israeli-Palestinian Conflict that ensures peace and equality in the long run for Israelis and Palestinians. I. The Palestine-Israel conflict is a major problem A. State Problems B. Human rights abuses i. Amnesty International - 2014 conflict report C. War i. If Americans Knew - Death Toll II. Causes A. Israeli settlements keep being built i. The Guardian- settlement numbers B. Palestinians and Israelis live in drastically different situations iRead MoreMiddle East Conflict Blood Feuds Essay851 Words   |  4 PagesMiddle East Conflict Blood Feuds The knowledge and understanding of blood feuds helps in the develop understanding of the current conflicts in the Middle East. The Middle East conflict started after World War II when the United Nations handed the Jewish people land once owned by the Palestinians. A conflict has occurred with the Palestinians who live together with Israelis that has led to terrorism and tyranny. Israelis believe they must control the Palestinians to stop their terrorism; whileRead MoreThe First Two Uprisings Of The West Bank, Gaza And East Jerusalem1341 Words   |  6 Pagesin this literal sense the first two uprisings in 1987-1993 and 2000-2003 failed to achieve the goal of Palestinian autonomy or eventual independence. The First Intifada took place on the 8th of December 1987. This protest was against Israeli’s occupation of the West Bank, Gaza Strip and East Jerusalem. At the crowded checkpoint Israeli truck swerved and killed four The Palestinians. Palestinians in revenge swept across the Gaza Strip, spread to the World Bank and set into motion a blaze of nationalistRead MoreThe Israeli-Palestinian Conflict Essay1202 Words   |  5 PagesThe Israeli-Palestinian conflict was started when the United Nations proposed the partition plan for Jewish homeland in 1947. The Jewish agrees with the plan but the Palestinians disagree because they think it is unfair for their land being taken. Since then, many wars have been fought between Israel and Palestinians such as: -1948 War of independence -1956 Sinai war -1967 six day war -1973 Yom Kippur war etc. These wars had made angry Palestinian lostRead MoreIslamic and Middle East World Conflicts1048 Words   |  4 Pagescurrent conflict in the Middle East and Islamic world stands as the biggest constraint to peace in the region? Discuss with reference to at least two conflicts. Historically, there have been many problems in the Middle East due to foreign occupation. Middle East has always been hot and it is still hot. However, there seems to be no end to the fire. There have been a lot of peace talk in the region, but the conflicts still is still unresolved. In this paper, I will discuss the top three conflicts inRead MoreThe Tale Of The Endless Conflict1699 Words   |  7 PagesEndless Conflict INTRODUCTION The Israeli-Palestinian conflict is a sector of the Arab-Israeli conflict. At large, it is the result of misunderstandings and inactions. This conflict has been greatly influenced and altered by the opinions and movements made by outsiders, specifically international powers such as the United States. Those states have both helped and hurt the situation; moreover, the attempts of exterior mediation have ultimately furthered the extremes of both the Israelis and the PalestiniansRead MoreConflict In Israel, Israel And The Arab War925 Words   |  4 Pagesas an ancient conflict that has been going on for centuries, fueled by religious hatred. In reality the current conflict has less to do with religion than the conflicting claims of two groups to the same region. These claims were made in the early 20th century, anticipating the fall of the Ottoman Empire, with the backing of British promises of an independent state for both sides. These claims stoked nationalism on both sides. The re gional arabs began to see themselves as Palestinian before arabsRead MoreTerrorists in the 1972 Munich Olympic Games1241 Words   |  5 PagesSeptember fifth, 1972, the terrorist group, Black September, took nine Israeli athletes hostage during the 1972 Munich Olympic Games. Black September was a small group of Palestinian militants, almost unknown to the world before the Munich Games. The group belonged to the PLO, or the Palestinian Liberation Organization. The origin of Black September’s anger goes back to the long-lasting conflict between the Palestinians and the Israelis, which dates back thousands of years . Black September had one purpose

Fundamentals of the fast Decision theory - myassignmenthelp.com

Questions: 1. Your firm prints the novelty baseball cards that candy makers include in their bubble gum. Since you regularly sell 100,000 cards per week, you invested in four separate production lines that can each produce 25,000 cards in a standard 40 hour work week. Now a few of the candy makers are increasing their orders so that you will need to produce 150,000 cards per week, at least temporarily. If you produce these cards by adding a swing shift from 4 pm to midnight, you will have to pay workers time and a half. What does this imply for the shape of your short-run marginal cost curve? What does it imply for your pricing? 2. Noras Nicest Knick Knacks has produces a variety of products sold as souvenirs. She started out printing local sayings on tee-shirts, e.g., FDNY, and purchased plain tee-shirts from a single supplier. Since then, she has added coffee mugs, key chains, souvenirs spoons and many other items. For each of these, she has lined up one or more suppliers. How does the change in the sourcing of her inputs affect how much of the value she creates that she gets to capture? 3. Hanks Honkytonk is a local bar and nightspot. On weekends, it requires a $5 cover charge to defray the costs of the live musical acts Hank brings in. This has worked wonderfully, as it generates capacity crowds and a long line of people waiting to enter. However, after the cost of the acts, he still loses money on the weekends. What is his marginal revenue and marginal cost of a patron on weekends and how should he attempt to fix his unprofitability problem? 4. The Six Flags Over Texas amusement park in the middle of the Dallas-Fort Worth Metroplex has a tie-in marketing campaign with Coca-Cola during the summer. In local grocery stores, some Coke cans offer $5 off admission to the park. Why does Six Flags limit these cans so that none are sold further than 20 miles from the park? 5. A firm and its supplier are going to negotiate a deal every quarter. Since the suppliers cost is $10 million per quarter and the value to the firm is $14 million per quarter, there is $4 million per quarter to split between the two. However, they can hire a negotiation consultant for a quarter for $500,000. If neither hires the consultant, each expects to get half of the $4 million pot. If only one hires the consultant, it expects to get three-fourths of the pot minus the consultant costs. If they both hire consultants, they cancel each other out and they expect to get half the pot minus the consulting costs. They expect to repeat this process every quarter for the foreseeable future. Can they agree to ban the consultants? 6. A buyer for a department store must decide on which designs the stores will carry before he knows what the demand will be in the coming season. Choosing a poorly demanded design means lots of unsold merchandise and losses that are $200,000 on average. Passing on a highly demanded design means unsold merchandise and missing out on profits that are $300,000 on average. What probability of a designs success should he be in order to choose to carry it? 7. At an oral auction for a lamp, half of all bidders have a value. Answers: ANSWER 1 We note that the question is asking for two answers. One is the effect of an extra shift on short run marginal costs. The second is the consequent effect on pricing decisions due to this change in marginal costs. The key lies in differentiating between variable and fixed costs. Variable costs of production are costs that vary with output level. Typically wages are a good example as we need more workers who are paid in the form of wages to produce more. Fixed costs are costs that do not vary with how much is produced. A good example is rent paid for the factory premises. In this case of our firm a new shift will imply more workers and attendant usage of raw materials and electricity ( to possibly run the machines). The added costs of wages of the workers in this shift and the costs of electricity and materials constitute variable costs. From economic theory we know that when variable costs rise, the marginal cost curve shifts upwards (from MC1 to MC2) to reflect higher marginal cost f or unit production. The typical shape of the marginal cost curve is U shaped reflecting the law of variable proportions. The new shift may not change the shape of the curve but it will certainly shift the marginal cost curve upwards. As a consequence pricing policy needs a review. An equilibrium condition demands that marginal revenue equals marginal cost for a firm. The price that maximises profits for the firm is a price where MR and MC are equal for the last unit produced. As MC rises with the extra shift the effect on price will be to increase it from P1 to P2, and quantity produced in equilibrium rises from Q1 to Q2. Answer 2: We need to analyse the shift from 1 supplier to multiple suppliers for Nora Nicest Knick Knacks. There is another change that has occurred along with this supplier change- Nora has expanded her product offering to go beyond tee-shirts, and it now includes cups, mugs, key chains and many other items. This expansion in offerings is beneficial as Nora is able to cater to a wider customer group. This in itself will allow her to create more value as she caters to more customers with wider choices. She will be able to capture a larger part of this value creation with the right kind of pricing, keeping in mind consumer preferences. She can also gain value created from the expansion in supplier base. She is no longer dependent on a single supplier who could get away by capturing larger share of the value created due to the supplier-buyer relation. Multiple suppliers allows her to be flexible in her choice of suppliers and consequently she can take away a larger part of the value created from each supplier as compared to the value she got from a single supplier. Answer 3: The question tells us that Hank Honkytonks(HH) is not making profits on weekends, after charging a $5 charge from each patron. This charge is the revenue for HH. Its profits can be understood when we look at its costs as well, since profits are the difference between revenues and costs. Since we have no information on costs but know of its losses it is clear that costs exceed revenues. In this scenario the future course of action depends on variable and fixed costs components of costs. We distinguish between 2 cases. Case1: Revenues cover only the variable costs of running HH on weekends. This implies that variable Costs are covered by the revenues generated from $5 entry fee. The losses are therefore equal or less than the fixed costs. HH can continue its weekends programs in the hope that in the long run more patrons will come in and revenues will be enough to cover fixed costs as well. It can also seek to lower its fixed costs; a possibility is to take on a different band that charges lesser from HH. Alternatively HH can negotiate with the band to charge lower amount or charge in line with the number of patrons. The last option will convert the band charges to variable costs, wiping out losses. Case 2: If the revenues are not covering the variable costs then HH has no option but to close down/ shut down operations. This conclusion is based on economic theory which relies on differentiating between fixed and variable costs. It also assumes that the firm can make no changes to its costs or revenues. If we allow some changes then things can be different. For example HH can try to increase revenues and/or lower costs. One way to increase revenues is to increase entry fee without loss of patrons. If the demand for HH is inelastic then a rise in fees will not lower the number of patrons, and will boost revenues as well. It can also lower costs by changing the band that plays on weekends or renegotiating with the band to charge a lower price. It may also work on partnership basis with the band where revenues/losses are shared, so that fixed costs can be lowered. Answer 4 the answer here lies in the concept of price discrimination. It refers to a concept where a firm charges a different price from each consumer depending on a variety of aspects of the consumer his preferences, time of use, quantity bought and willingness to buy. The Six Flags Over Texas amusement park would like to charge a higher price from the tourists who visit it, and a lower price from the local people. This is possible as tourists have a higher willingness to pay for the park attractions, as compared to local people who have little novelty value for these attractions, and are willing to pay a lower price for the park attractions. The discount is meant for locals who may visit the park as their willingness to pay is lower. The use of the Coke can effectively lowers the price of entry into the park for such locals whose willingness to pay is lower than tourists. Such locals may not visit the park at full price as the price exceeds their willingness to pay for the park attractions . The tie up with Coke is purely to attract more customers as Coke sells widely. A discount of $5 may encourage Coke drinking locals and tourists to visit the park. However it is also desirable that this $5 discount is not used by tourists, as they are willing to pay more. So the limit of 20 mile radius is imposed to limit the use of this scheme by tourists from far away. This implies that the park considers people in this radius to be locals who may be encouraged to use the Coke can to get cheaper entry. Tourists can also use the discount, but they will have to be in the 20 mile radius to be able to buy the can. (values in $ million) HIRE(firm) NOT HIRE(firm) HIRE(supplier) 1.5, 1.5 1, 2.5 NOT HIRE (Supplier) 2.5, 1 2, 2 Answer 5 Each player the firm (F) and its supplier (S). has two options- to hire the consultant or not hire the consultant. If both do not hire the consultant then payoffs to each are $2 milion. If the firm only hires then its payoff equals * 4million -500000= 250000. The supplier gets *4 million = 1 million. If the supplier hires then he ends up with 250000 while the firm gets 1 million. If both hire ten each one gets 2mllion 500000 or 150000 each. This is shown in the table below. The best response of the firm is to HIRE irrespective of what the supplier does as the payoff from hit=ring are more than that from not hiring for each action of the supplier. ( 1.5 1) and ( 2.5 2). The dominant strategy for firm is to HIRE. A similar logic makes HIRE the dominant strategy for the supplier. So the Nash equilibrium is that both will hire and end up with 1.5 million. This result assumes no dialogue between them. However if they can sit down and share the table between them then they realise tha t they are better off not hiring. However there must be some trust between them that the other player will not hire. If the other one hires then the player that does not hire is left with $1 Million, while the player that hires gets $2.5 million. Since the game is repeated it can be expected that past behaviour is good sign of future behaviour. If both have not been hiring in the past we can have the same equilibrium in the future. If they can negotiate and sit down together then they can agree to not hiring as it is in mutual interest to do so. Answer 6: Demand is uncertain and this forces two options on the buyer here. One is to have a poor design choice and the other is to choose a design in high demand. If a poorly demanded design is ordered then the losses equal $200000. The other option fetches a profit of $300000. These values are the payoffs from two alternate choices in an atmosphere of uncertainty. Next we need to have an objective in mind in terms of expected profits. For example the buyer may want to try to avoid any losses, so that expected profits can be equated to zero. Let p stand for the probability of choosing poorly demanded design, while 1-p is the chance for a high demand design to be ordered. Expected profits is the sum of weighted profits( or losses) where the weights are the probabilities associated with each choice. So expected profits = p*300000 +(1-p)*(-200000) = 0 A minus sign signifies loss of 200000 Solving this we get p = 2/5 or 40%. So the probability of a designs success must be 40% for the firm to order it. This figure assumes that the firm is aiming at zero loss / zero profit. If the objective is changed to ( say) an expected profit of 50000 then we have expected profits = p*300000 +(1-p)*(-200000) = 50000 now p= 0.5 or 50%. Answer 7 The expected winnings from an event depend on two things. The first is the amount of winnings promised if the participant wins and the associated loss if she does not win. The second requirement is the probability or chances of winning itself, along with the list of all possible options (win, loss or nothing). In this case we are not exactly winning or losing, but the analysis is similar. There are two options here- high value bid ( $70) and low value bid( $50). The chances of a high value bid are 0.5 as we have 2 bidders out of 4 who have a value of $70. The winnings/losses from the bid are the value of the bid made- $70 or $50. The expected winning bid equals the weighted average of all possible bids, where the weights are the probability of the bids. Expected winning bid= Sum of product of the bid amount and the probability/chance of this amount = .5*70 +.5*50 = $60. The number of bidders does not directly form part of the answer as we have used it to calculate the chances of each possible bid value. Assume that 3 bidders had a value of $70 and one bidder has $50 value. Then the probability of $70 bid would be =0.75 so that expected winning bid would equal .75*70 +.25*50 = 52.5 + 12.5 = $65. Reference Mausam, n.d. Fundamentals of Decision theory. [Online] Available at: https://courses.cs.washington.edu/courses/cse573/12au/slides/05a-decisiontheory.pdf [Accessed 9 Jan 2018]. siue.edu, n.d. A very fast intro to decesion theory. [Online] Available athttps://www.siue.edu/~evailat/decision.htm [Accessed 8 Jan 2018]. Anon., n.d. 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