Every year a host of aspiring NYC drivers take a driver's education course (Driver's Ed), which consists of 24 hours of in-class education and 24 hours of behind-the-wheel practice. This is a requirement to obtain a license. There are many providers of this service, with different willingness to sell based on the per-student costs of providing training. There are also different segments of the market with different willingness-to-pay, based on both ability to pay and their best alternative options (e.g., public transit).

(Note that these data are available inthe attached picture below)

Table 2a: NYC Driving schools Capacity (# Name students) WTS The Fast and the Furious: Back to School 8,000 $550 Speed Racer Academy 14,000 $350 Death Race NYC 22,000 $800 The Cannonball Commute Company 18,000 $600 Talladega Traffic School 16,000 $400 Top Gear Prep 22,000 $250 Table 2b: NYC Consumer Segments Segment # Consumers WTP 8,000 $675 4,000 $575 2,000 $475 22,000 $775 3,000 $625 6,000 $525 15,000 $325 10,000 $175 2,000 $425 17,000 $725 24,000 $225 4,000 $375 M 19,000 $275