Question: This is an approach to schedule back-office sBack to the Stanford stadium pricing problem is Section 5.4, assuming a capacity of 60,000 seats and the

This is an approach to schedule back-office sBack to the Stanford stadium pricing problem is Section 5.4, assuming a capacity of 60,000 seats and the demand curves for students and for the general public as given below:

d_g (p_g )=120,000-3,000 p_g

d_s (p_s )=20,000-1,250 p_s

Assume that 10% of the general public will pretend to be a student (perhaps using borrowed ID cards or using their old student ID card) in order to save money. Assuming that Stanford knows that cannibalization will happen, what are the optimal prices for student tickets and general public tickets it should set in this case?

What is the total revenue, and how does it compare to the case without cannibalization?

What does this say about the amount that Stanford would be willing to pay for such devices as photo ID cards in order to eliminate cannibalization? Assume the cost can be covered in ten years. ervice operations with no customer contact:

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