Problem I-C: Take into account the
The following is the situation. You can find M sellers selling used phones on the
Market and potential buyers for Bertrand Fashion
These cellphones are available for purchase. You can assume that cellphones are either good or bad.
Quality or poor quality. For reservations, the price is $150
A good phone will cost you $20, while a poor phone will cost you $20. Customers are
You can pay as much as $200 to get a high-quality phone and $50 to purchase one.
A poor quality phone is not worth the price. A ratio between good and bad phones
Half of these M sellers are from this category. It means that each phone with a good camera is worth half of its price.
Two bad phones exist or there is a high chance of you dealing with them.
Good phone 1/3, and bad phone 1/3.
It is 1/3.
c) What should be the seller’s reservation price for the high
We will not see an advertisement for a quality phone that costs $150 or more
Negative selection is a problem Answer: (? 100)
As I do not know the answer, please reply to this question.
This subject is important to me too. Many thanks!
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