Internet Exercises


1			Go to http://www.ebay.ca Consumer Choice – Individual Choice and Attainable Combination. Assume that you and several classmates each receive a $300 credit voucher (good for today only) from the Hudson's Bay Company. Go to the McConnell-Brue-Barbiero Web site (Chapter 5) to access the Bay's home page and select $300 worth of merchandise. Use "Add to Basket" to keep a running total. Compare your list with your classmates' lists. What explains the differences? Would you have purchased your items if you had received $300 in cash to be spent whenever and wherever you pleased?




2			Go to http://espn.go.com/ The ESPN Sportzone – To Fee or Not to Fee. The ESPN Sportzone is a major sports information site. Access its site by going to the McConnell-Brue-Barbiero Web site (Chapter 5). Most of the content is free, but ESPN has a premium membership (see its "Insider") available for a monthly or an annual fee. Similar, but fee-free, sports content can be found at the Web sites of CNN/Sports Illustrated, and CBS Sports Line. Since ESPN has put a price tag on some of its sports content, it implies that the utility premium membership cannot be found at a no-fee site and is therefore worth the price. Is this the case? Use the utility maximization rule to justify your subscribing or not subscribing to the premium membership.