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1. SOCIAL NORMS WHEN RECLINING AIRLINE SEATS a) The resource that is being discussed has to do with the property of the space of your site when you are in a plane and why we are indeed right when reclaining the chair since, after all, we have paid for it. b) The one with right to reclain the chair is the one who has paid for that service so the passenger located in front of you is doing well when reclaimed their site because that decisions belongs to them. Also, we could say that from Coase’s point of view this space should be assigned to whom valuates it the most. c) Yes, it could lead to inefficiency since the comfort of one passenger may provoke the discomfort of another. The fact that someone decides suddenly to recline their seat could eventually create a negative externality during the flight since another one will be angry since their space is being reduced. d) Yes, in this case would be appropriate to talk about social approval since the passenger located in front of you will think it twice before deciding reclaining the chair because of the scarness of being social condemned for their behaviour. e) If the legroom is assigned through bargaining, both passengers may experience very different emotions depending of the moment of the transaction. As Daniel Kahneman said, we value more the lost than the gain so the passenger that has sell their space for reclaining the chair, even if gets paid, will experience a lost immediately after selling it. This lost feeling could even be larger than the feeling of gain thanks to the sell. f) Intermediate allocation solutions are not as good as they may seem. The problem comes from the risk of passengers to know there is an inequality being accepted by the airline so they will experience a lost and even stop flying with that company and provoke many benefits loses. 2. STAKEHOLDER MANAGEMENT IN RYANAIR a) Definitely not. It is commonly known that the media tends to deteriorate the perception customers have about Ryanair through news that highlight the low prices and the cheap conditions they offer. The benefits of this company however do not decrease since this information does not change customers perception, they are, let’s say, more attracted by low prices rather than by the news. b) Personally, I do not believe that could attempt against other airlines’ workers because they occupy different job positions and therefore different conditions. c) We can talk about a case of asymmetric information since the companies like Ryanair know very good the preferences of their customers due to the analysis of their elections while buying a flight ticket. We see a particular case in which the increase in the price of a

ticket can alter other customers purchases since they are paying more even if they do not have a large baggage to check-in. d) Organizations like FACUA have common goals based on improving the services customers get and make their experience and security while flying better. They protect them by creating norms airlines must respect not to be fine. The result, however is directly reflected on the price of tickets which increases. 3. BLOCKCHAINS The technology of the blockchain is the reason why cryptocurrency transactions can be made with no government or central bank controlling or approving it. Briefly, it helps to descentralizate the way the cryptocurrency market works and avoiding the entrance of any kind of institution. Information in this markets is carefully encrypted so that no one will be able to know who has carried out the transaction or how much money has it evolved. However, even if this technology is quite efficient, it is relevant to highlight the existence of people specialised on discover this information in exchange of money. Nevertheless, it is necessary to analyse if this method is efficient when a contract has to be signed. There is an advantage when stipulating the conditions of the contract because if they are not respected the punishment is carried out immediately so we can say this way it provides a lot of security to both parts. However, if contracts are too long or hard to write, difficulties may come out since everything has to be encrypted by the system. Also, it is very hard if one of the parts want to change any condition of the contract because of all the procedures needed. Finally, we should not forget the possibility of hacking the system and change the contract is not little even if it's quite difficult to achieve it. 4. COASEN BIKES To answer all these questions it would be appropriate to formulate the two situations before and after measures were taken. Before the sanction of favourable policies to cyclists, there was an asymmetric information scenario due to the great amount of sign posts car drivers had and cyclists did not. It lead to a best informed users of the road whilst the other ones remained under the danger of circulating around the city. Also, put both types of drivers together causes discomfort since they differ to each other at the velocity they reach when driving a car or riding a bike. Cars can circulate faster than bikes and this creates differences at the street and therefore bottlenecks and discussions not to talk about accidents. Furthermore, cyclists risk of circulating is higher in such a dangerous environment and of course they are more vulnerable since a bicycle is not designed to protect the rider. After the measure was taken bicycles were allowed to circulate using the sidewalk part of the street. This caused the beginning of the insecurity and discomfort of pedestrians who felt they were being invaded by dangerous vehicles. Again, it created negative externalities which lead to a problematic situation.

From the point of view of Coase, property right should be assigned to the users who appreciate it the most. So, since bicycle riders also value the fact of having their space to circulate, they deserve a part of the street to be given to them.They should share the right of possession of the street with the rest of users. Therefore, the main solution from a Coase’s perspective would be to introduce a roar exclusively for bicycles to circulate. This way all the users would feel again comfortable in their particular areas. Also, it would generate more security since these new roads will be implemented with specific bicycle sign post....