Problem Set 8
نویسنده
چکیده
There are a large number of identical purchasers of boat rentals, none of whom own a boat, and whose utility from a boat ride depends on the weather. The state of the weather can take one of four values s = +2,+1,−1,−2. In state s, the utility of a renter is βs log t− p.t where β is a positive number, t is the amount of time that the boat is rented for, and p is the price paid per unit time of the rental. Each renter assigns equal prior probability to the four possible states. Let T denote the fixed supply of boat rental time in this economy per consumer.
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