4. Consider Jamboree Software Inc's problem of pricing its new word processing software. Its typical consumers are of types: Authors and Academics (A) and Students (B). There are 100 of each type in the market. Assume that each consumer just buys one unit of the software. Jamboree offers an office software (Version W) with advanced word processing features for which Consumer group A has a willingness-to-pay of $250 while Consumer Group B has a willingness-to-pay of $100 for this software. Now, Jamboree's engineers have designed a more basic Version S. Consumer group A has a willingness-to-pay of $200 and Consumer group B has a willingness-to-pay of $80 for Version S. (a) Suppose Jamboree is considering the timing of offering the two versions, together or sequentially, i.e one after the other. Suppose it knows that the consumers discount their valuation for the software at the rate of 20% per year while Jamboree discounts its own future earnings at the rate of 75%. Should Jamboree offer both the versions together at the same time or should it offer them sequentially. If the latter, in which order should the versions be introduced? (b) Suppose it is the case that the discount factors are reversed, i.e. the seller is more impatient than the consumers. Seller's discount factor is 20% while the consumers' discount factor is 75%. Examine whether the versions should be offered sequentially or simultaneously. 4. Consider Jamboree Software Inc's problem of pricing its new word processing software. Its typical consumers are of types: Authors and Academics (A) and Students (B). There are 100 of each type in the market. Assume that each consumer just buys one unit of the software. Jamboree offers an office software (Version W) with advanced word processing features for which Consumer group A has a willingness-to-pay of $250 while Consumer Group B has a willingness-to-pay of $100 for this software. Now, Jamboree's engineers have designed a more basic Version S. Consumer group A has a willingness-to-pay of $200 and Consumer group B has a willingness-to-pay of $80 for Version S. (a) Suppose Jamboree is considering the timing of offering the two versions, together or sequentially, i.e one after the other. Suppose it knows that the consumers discount their valuation for the software at the rate of 20% per year while Jamboree discounts its own future earnings at the rate of 75%. Should Jamboree offer both the versions together at the same time or should it offer them sequentially. If the latter, in which order should the versions be introduced? (b) Suppose it is the case that the discount factors are reversed, i.e. the seller is more impatient than the consumers. Seller's discount factor is 20% while the consumers' discount factor is 75%. Examine whether the versions should be offered sequentially or simultaneously