Sketches of Answers to Problem Set 1
نویسنده
چکیده
(1) (a) Imagine that companies have some different costs of installing fax machines (perhaps because of different degrees of liquidity or access to credit) but that they all face a return from installing the machines that depends positively on how many other companies are installing. Then the graph that you draw will be upward-sloping. The more companies that are expected to install the machines, the more will actually do so. [Important: note that the intersections of this graph with the 450 line describes the equilibrium outcomes. Can you tell which intersections might be stable and which unstable, in the sense discussed in class?]
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تاریخ انتشار 2002