There are two primary sellers of toy cars, Matchbox and Hot Wheels.

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There are two primary sellers of toy cars, Matchbox and Hot Wheels.
  • There are two primary sellers of toy cars, Matchbox and Hot Wheels.

  • Answers • 1 pages • 2019
  • (Inspired by the HBS case The Toy Game.) There are two primary sellers of toy cars, Matchbox and Hot Wheels. Suppose there are 100 consumers, each of whom wishes to buy at most one car: a toy car is worth $5 to a consumer. Half of the consumers are Matchbox fans; the other half are Hot Wheels fans. However, fandom is fickle: a consumer will buy the cheapest car unless both cars are equally costly to the consumer, in which case the consumer buys according to his fandom. The marginal cost of produ...
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