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Marie drives her scooter every day to get to work. She lives in Montreal where the fees for parking meters have increased considerably. City of
Marie drives her scooter every day to get to work. She lives in Montreal where the fees for parking meters have increased considerably. City of Montreal employees are patrolling to issue tickets to those who have not paid their parking meters. Considering the number of employees who monitor the parking spaces, Marie has a 25% chance of getting a ticket if she does not pay for her parking space (for a given day). The cost of a ticket is $ 80. Marie's salary is $144 per day. Mary's utility function is U (R) = VR where Ris Mary's daily wealth. What is the expected use of Marie for the day, if she does not pay for her parking space? What is the maximum amount Marie will be willing to pay for a day of parking
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