and 100. Suppose further that sellers utility is given by US =M+a n i Xi where M
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and 100. Suppose further that sellers’ utility is given by US
=M+a
n i
Xi where M is the number of units of video games, which sell at $1 per game, and a is a utility function parameter that is strictly less than one (a < 1). Then sellers will offer cars with quality Xi
=P on the market.
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