5. Keat and Sunday are neighbors. They want to live in a clean environment and want their street to be clean. The utility from the clean street is same for both at 10 if only one person clean it and the utility will be same for both at 12 if both people clean it. The problem is someone has to clean the street in order to have a clean street and cleaning the street is a public good. Keat's cost of cleaning the street is ca and Sunday's cost is c;. Both ch and c; can have two values, either 5 or 12. The probability that the cost will be 5 is 3/4. The payoffs will be as the following table. Sunday Clean Don't Keat Clean 12- сh, 12- с 10- сh.10 Don't 10, 10- cj 0,0 Find three Bayesian equilibria of the game.
5. Keat and Sunday are neighbors. They want to live in a clean environment and want their street to be clean. The utility from the clean street is same for both at 10 if only one person clean it and the utility will be same for both at 12 if both people clean it. The problem is someone has to clean the street in order to have a clean street and cleaning the street is a public good. Keat's cost of cleaning the street is ca and Sunday's cost is c;. Both ch and c; can have two values, either 5 or 12. The probability that the cost will be 5 is 3/4. The payoffs will be as the following table. Sunday Clean Don't Keat Clean 12- сh, 12- с 10- сh.10 Don't 10, 10- cj 0,0 Find three Bayesian equilibria of the game.
Algebra: Structure And Method, Book 1
(REV)00th Edition
ISBN:9780395977224
Author:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Publisher:Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Chapter2: Working With Real Numbers
Section2.7: Problem Solving: Consecutive Integers
Problem 1OE
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Transcribed Image Text:5. Keat and Sunday are neighbors. They want to live in a clean environment and want their street
to be clean. The utility from the clean street is same for both at 10 if only one person clean it
and the utility will be same for both at 12 if both people clean it. The problem is someone has
to clean the street in order to have a clean street and cleaning the street is a public good. Keat's
cost of cleaning the street is ca and Sunday's cost is c;. Both ch and c; can have two values,
either 5 or 12. The probability that the cost will be 5 is 3/4.
The payoffs will be as the following table.
Sunday
Clean
Don't
Keat
Clean
12-сh, 12- с
10- сh.10
Don't
10, 10- cj
0,0
Find three Bayesian equilibria of the game.
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