April 2016
Intermediate to advanced
284 pages
9h 26m
English
book
Practical Spreadsheet Risk Modeling for Management
by Dale Lehman, Huybert Groenendaal, Greg Nolder
Content preview from Practical Spreadsheet Risk Modeling for Management
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Conceptual Maps and Models 21
The curve in Figure 1.10 represents the value to the marginal user
under the following conditions. Each user has an intrinsic value that
represents the value to him or her, assuming that everybody else is
also a user. Since people differ, these intrinsic values will differ across
people. In this exercise, assume that the intrinsic values are given by
100(1 – F), where F is the fraction of the population that uses this service.
This means intrinsic values start at $100 (for the person with the highest
valuation) and range down to $0 for the person with the lowest value.
The actual realized value for each user is given by the intrinsic value
multiplied by F: If everybody subscribes
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