Discussion Forum 5
April 15, 2015
Question 4.
How can introducing yearly style changes lead to a prisoners’ dilemma for automakers?
Each year automakers spend a great deal of money on research and development. When companies have introduced new models others have tried to copy and improve the design so their product would sell better. The first hybrid and electric cars come to mind when speaking of all the money that has been spent but never regained. Companies such as Tesla and Fisker have been able to change the image of all electric cars so the consumer would buy the product. Many times for example Ford and General Motors spend money on the exact same research to learn the same ending result. In the event these companies could have a group that would share some information to save cost it could help reduce the cost to the consumer. New models must be presented to the consumer or the consumer would buy from a company that has newer looking cars. “In the current study of a multi-round prisoners’ dilemma experiment, we introduce two correlated matching procedures that match subjects with similar action histories together”. (Chun-Lei, 2007) If the auto makers would use the study referenced above more than likely consumers and producers would be able to save a great deal of money. In the future automakers should escape some of the burden by doing business more like Dodge, often times Dodge will not release a great deal of information to the public until the car comes out for sale. By doing this consumers excitement has not worn down by the time the car is unveiled.
Question 5.
Respond to the charge that immigrants flood the labor market and drive down wages in the U.S.
Many people would agree that immigrants have taken jobs from the U.S. economy over the years and currently it is harder to find a job than before. Although in some cases this could be true it is important to look at the whole picture before determining a correct response. Many jobs that immigrants have taken in the U.S. are jobs that citizens did not want in many cases and if they would take the jobs it would be for a much larger pay than the immigrants will accept. In the event that a company could not hire workers for a cheap rate it is possible that the company would move to another country and ship the products to the U.S. Many companies have moved in previous years because of cheaper labor in other countries. It is sad that many people in our country are living on the edge or in poverty because of this matter. At some point the inflation of products must go down to allow each person a better way out. Although working hard in school or the workplace will advance an individual’s career as well as pay. “Perhaps no definitive end to the debate can be achieved because theoretical constructs such as “productivity” and “quality” cannot easily be measured”. (Massey, 2010) After looking at the problem it is very hard to determine which side would be best for the U.S. in the future.
References
Chun-Lei, Y., Ching-Syang, J., & I-Tang, Y. (2007). The rise of cooperation in correlated matching prisoners dilemma: An experiment. Experimental Economics, 10(1), 3. doi:http://dx.doi.org/10.1007/s10683-006-9139-8
Massey, D. S., & Gelatt, J. (2010). What happened to the wages of mexican immigrants? trends and interpretations. Latino Studies, 8(3), 328-354. doi:http://dx.doi.org/10.1057/lst.2010.29
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