Variable Minimum Maximum Median Price (CostBad)

ValueGood 400 600 500 200

ValueBad 200 300 250 200
CostGood 200 400 300 200
CostBad 100 200 150 200

Seller 150
Buyer 250
Price 200

Seller surplus 50
Buyer surplus 50
Total welfare 100

Quality Bad
Variable Minimum Maximum Median Price (CostGood)
ValueGood 400 600 500 400
ValueBad 200 300 250 400
CostGood 200 400 300 400
CostBad 100 200 150 400

Seller 300
Buyer 500
Price 400

Seller surplus 100

Buyer surplus 100
Total welfare 200

Quality Good
If an institution has the possibility to force people to produce cars with
maintenance it should do so. The previous tasks show that the total
welfare would then increase from 100 to 200, and both buyers and
sellers would benefit.
Period Profit TotalProfit Type ValueGood ValueBad CostGood CostBad
1 -119 -119 2 514 231 0 0
1 -125 -125 2 569 275 0 0
1 0 0 2 587 210 0 0
1 -73 -73 2 471 287 0 0
1 -77 -77 2 586 273 0 0
1 -133 -133 2 411 266 0 0
1 -100 -100 2 460 275 0 0
1 -48 -48 2 479 292 0 0
1 -149 -149 2 450 201 0 0
1 -111 -111 2 414 239 0 0
1 -66 -66 2 457 284 0 0
1 -59 -59 2 484 281 0 0
1 0 0 2 447 265 0 0
1 237 237 1 0 0 290 103
1 229 229 1 0 0 334 146
1 188 188 1 0 0 324 162
1 0 0 1 0 0 347 130
1 205 205 1 0 0 311 155
1 174 174 1 0 0 383 176
1 212 212 1 0 0 389 128
1 0 0 1 0 0 251 158
1 219 219 1 0 0 381 131
1 221 221 1 0 0 230 129
1 243 243 1 0 0 242 107
1 282 282 1 0 0 343 117
1 210 210 1 0 0 206 190

No maintenance
Total Value Bad 3379
Total Cost Bad 1832
Total Welfare 1547

Maintenance
Total Value Good 6329
Total Cost Good 4031
Total Welfare 2298
Quality Cost ValueBought Price
0 0 231 350
0 0 275 400
0 0 0 0
0 0 287 360
0 0 273 350
0 0 266 399
0 0 275 375
0 0 292 340
0 0 201 350
0 0 239 350
0 0 284 350
0 0 281 340
0 0 0 0
0 103 0 340
0 146 0 375
0 162 0 350
1 347 0 0
0 155 0 360
0 176 0 350
0 128 0 340
0 158 0 0
0 131 0 350
0 129 0 350
0 107 0 350
0 117 0 399
0 190 0 400