For your senior thesis, you polled your classmates, asking them, “How much would you be willing to pay to double the amount of parking on campus?” Based on their responses, you estimated that your fellow students were collectively willing to pay $12million to double the amount of on-campus parking. What are some problems with this type of analysis?
Answer to relevant QuestionsConsider the Deacon and Sonstelie (1985) approach to valuing time described in the text on p. 216. Imagine that two cars are equivalent to one another in every way (such as gas mileage) except for gas tank size, and car ...The city of Gruberville is considering whether to build a new public swimming pool. This pool would have a capacity of 800 swimmers per day, and the proposed admission fee is $6 per swimmer per day. The estimated cost of the ...The preference revelation problem associated with Lindahl pricing becomes more severe as the number of people in society increases. Why do you think this is true? Every year, the World Bank rates countries on the basis of their quality of governance, along a number of different dimensions (such as political stability, government effectiveness, and the rule of law). These indices are ...Brunner, Sonstelie, and Thayer (2003) studied how home ownership and community income influenced votes on a proposed initiative in California to allow children to obtain their locally funded education at any public or ...
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