3. Give one real-life example of positional arm races that you observe. What kind of inefficiency is resulted? Do you have any solution to that problem of positional externality?

answer; that person may have a larger tax bill to pay on income taxes;

answer; it can vividly demonstrate product attributes and persuasively explain their corresponding consumer benefits;

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;