Ian purchased an icewall refrigerator that regularly broke down. so, when his friend susan asked him to recommend a good refrigerator for her new home, ian said, "you can buy any refrigerator other than an icewall refrigerator because i had a bad experience with it." if susan forms a judgment based on what ian said, this bias of judgment is an example of the select one:
a. cognition-recall process
b. attribute recall heuristic
c. availability heuristic
d. judgment-encoding process
e. accessibility model

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers. firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?