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Homework answers / question archive / Hayden and Josh are roommates
Hayden and Josh are roommates. They share one bathroom. If Josh cleans the bathroom it takes him one hour. If Hayden cleans the bathroom, it takes him 30 minutes. They both clean the bathroom equally well and both find the job disagreeable. Each of them experiences unpleasantness valued at $100. This $100 accounts for both the opportunity cost of their time and the unpleasantness of cleaning the bathroom. (Another way of thinking of this is that each would happily pay $100 or less to avoid cleaning the bathroom.) When the bathroom is clean, they each experience $75 of well-being. (The feeling they get from a clean bathroom is equal to the value they would get from someone giving them $75.) This $75 captures all the well-being they get from the clean bathroom including how they feel about the benefit to others who visit or live in their household.
a) If Josh cleans the bathroom, what is the total benefit for the household? Does this exceed Josh s costs?
b) Do you think that Josh will willingly clean the bathroom? Why or why not?
c) Can you think of a regulatory solution to their bathroom cleaning problem? Explain.
d) Can you think of a market-based solution to their bathroom cleaning problem? Explain
a) If Josh cleans the bathroom, what is the total benefit for the household? Does this exceed Josh s costs?
Yes, for either of the roommates, the cost of cleaning the bathroom is $100 and the benefit is only $75. So the cost exceeds the benefit for both of them. Because of the values given in the problem, the fact that Josh takes more time to clean the bathroom isn't really relevant.
b) Do you think that Josh will willingly clean the bathroom? Why or why not?
No, because the cost exceeds the benefit, nobody is willingly going to clean the bathroom.
c) Can you think of a regulatory solution to their bathroom cleaning problem? Explain.
Not really. I suppose if they are renters, then the landlord could impose some type of regulation on them.
d) Can you think of a market-based solution to their bathroom cleaning problem? Explain
Oh yes, for sure. If each of them is willing to pay $100 not to have to clean the bathroom, it should be easy to find somebody to hire who is willing to make $100 for between 30 and 60 minutes of work. If I knew where they lived, I would go apply for the job myself!
