Monday, September 28, 2009

They're in Hot Water Now!

Last year Antoine and Antawn occupied separate apartments; each consumed 300 gallons per month of hot water. This year they are sharing a larger apartment. To their surprise, they find that they are consuming 1000 gallons per month. Explain.


Wanting Sun said...

My name is Wanting Sun.
According to the post,Antoine and Antawn lived in separate apartments last year.They need to pay the apartment rent by themselves.They used the moderate gallons of hot water (300) which is enough for their daily life. This year, when they are sharing the apartment, of cause,they share the rent fee. So each person paid the rent fee divide equally. But it is not to say that they must allocate the usage amount of hot water equilibrium. Each person wants to get maximum profit and use more hot water than another one. Otherwise, they feel unfair because they paid the same money.Actually, 300+300=600 gallons are enough for both of them, but due to the mental of equilibrium and unfair, they consuming much more gallons of hot water (1000)per month.

Greg Delemeester said...

Wanting, I don't think you've successfully explained why the two guys are using more water living together compared to living apart. Focus your answer on the incentive structure facing roommates.

Zhongtian said...

This is a free ride problem.When they stayed in separate apartments,they had to pay the bills separately.
This year they are sharing the bill of water.They might not have the incentive to make good use of hot water.