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offers both categories of cabin, charging pe for economy Py for first-class. What incentive-compatibility constrain and par ticipation constraints on PE and Pp must the

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offers both categories of cabin, charging pe for economy Py for first-class. What incentive-compatibility constrain and par ticipation constraints on PE and Pp must the crui line satisfy if it wants the regular passengers to travel economy and the high-end ones to buy first-class cabins? What values of Pe and of will maximize the expected pro when Gulliver's offers both cabin categories? What are th expected profits? (1) Putting it all together, decide which categories of cabin the cruise line should offer, and what price it should charge for each one of them 2

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