1. When Nongfu spring water claim that it is the nature’s carrier in the advertisement, it makes the demand more elastic because the adver- tising persuades consumers to buy the product which is claimed to be of good quality.
2. Warranty can serve as a signaling device of a product liability, because consumers take more care about the product provided by reliable firm.
3. After the milk crisis of 2008, despite the effort of some dairy firms to improve food safety, consumers are still skeptical for the domestic dairy product because their belief on food safety is based on the whole industry’s past, instead of the individual firm’s past.
4. Perfect competition cannot be the first-best benchmark for the net- work economy because there is coordination failure among users of the network goods even under perfect competition.
5. When President Xi claimed that "The principle contradiction of China is between unbalanced and inadequate development and the people’s ever-growing needs for a better life", it raises a big challenge for the regulation because a better life requires a higher quality, an attribute not easily to be observed, verified and contracted.
6. If consumers’ preference is captured by a discrete choice approach, we see the consumers having a common preference on the attributes of products and each consumer purchases only one unit of product.
7. If capacity choice is strategic substitute, an increase of capacity by one firm will induce other firms to decrease their capacity.
