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The automobile makers Mercedes-Benz and Kia were considering entering a devel- oping country. Prior to entering a survey of consumers in this developing country indicated that consumers prefer

The automobile makers Mercedes-Benz and Kia were considering entering a devel- oping country. Prior to entering, a survey of consumers in this developing country indicated that consumers prefer Mercedes-Benz automobiles over Kia automobiles. However, after the two au- tomobile makers entered the country and began sales of their vehicles, consumers flocked to Kia dealerships. How can you explain this apparent paradox? (Hint: think about the data needed to infer a consumer's optimal bundle choice and the data provided here.)
 

Apr 02 2020 View more View Less

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