Assume that two individuals A and B have initial endowment of USD. 1000 each. They want to decide on building a public toilet that costs USD. 100. If the toilet is constructed each receives a benefit equal to USD 60. If both share cost, they pay 50 and gain 10. What would be the dominant strategy and what would each individual gain or loss i.

Assume that two individuals A and B have initial endowment of USD. 1000 each. They want to decide on building a public toilet that costs USD. 100. If the toilet is constructed each receives a benefit equal to USD 60. If both share cost, they pay 50 and gain 10. What would be the dominant strategy and what would each individual gain or loss i.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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