Assume you are managing a firm that recently entered in the transportation service, which is meter taxi service similar with Ride, Feres and others. If you have to estimate the demand for the transportation service you provide, (6 marks) a. What would be the explanatory variables you include in a regression model? b. Indicate how you may utilize the results of your demand estimation for decision- making. c. How do you make your pricing decision? d. What do you think is the market structure for meter taxi transportation in Addis? Give your justifications

/in /by

Assume you are managing a firm that recently entered in the transportation service, which
is meter taxi service similar with Ride, Feres and others. If you have to estimate the
demand for the transportation service you provide, (6 marks)
a. What would be the explanatory variables you include in a regression model?

b. Indicate how you may utilize the results of your demand estimation for decision-
making.

c. How do you make your pricing decision?
d. What do you think is the market structure for meter taxi transportation in Addis? Give
your justifications

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