Sprawlmaker,Inc

question 61

Essay

Sprawlmaker,Inc.was a developer of shopping malls and other shopping centers.Sprawlmaker was developing a shopping mall in suburban Detroit.Sprawlmaker approached Cindy about the development of a strip mall across the street from this shopping mall.Cindy and Sprawlmaker reached an agreement where Sprawlmaker would construct the strip mall for Cindy.She would become the owner,and would lease it out to tenants.The mall was already under construction at this point.Because Cindy's project was much smaller and simpler,it was finished before the shopping mall.Cindy paid Sprawlmaker all amounts due under their contract.There began to be problems with the construction of the shopping mall.Eventually Sprawlmaker and the construction company building the mall stopped communicating and construction stopped.Meanwhile,Cindy was unable to secure leases for most of the space in her strip mall.Cindy wants to sue to recover for lost rent.Discuss Cindy's options and the likely outcome of a suit.

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Definitions:

Assets

Resources owned by a person or entity that are expected to provide future economic benefits.

Intermediate Microeconomics

A branch of economics dealing with the behavior of individuals and firms in making decisions on the allocation of scarce resources.

Behavioral Economic Explanation

A behavioral economic explanation refers to analysis that incorporates psychological insights into human behavior to explain economic decision-making.

Nash Equilibrium

An idea in game theory that suggests a player cannot improve their situation by changing strategy if every other player's strategy remains the same.