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Consider the following 3-player public goods game. Players 1, 2, and 3 have the same initial endowment y and simultaneously choose to contribute to a public good. If player 1 contributes C1, player 2 contributes c2, and player 3 contributes c3, then player i's monetary payoff is xi (C1, C2, C3) = y − ci+m × (c1 + C2 + C3) where 3

Consider the following 3-player public goods game. Players 1, 2, and 3 have the same initial endowment y and simultaneously choose to contribute to a public good. If player 1 contributes C1, player 2 contributes c2, and player 3 contributes c3, then player i's monetary payoff is xi (C1, C2, C3) = y − ci+m × (c1 + C2 + C3) where 3

Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter8: Game Theory
Section: Chapter Questions
Problem 8.7P
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Suppose that each player i is only concerned about his own material payoffs with ui(xi) = xi. Derive the Nash equilibrium of the game.

Consider the following 3-player public goods game. Players 1, 2, and 3 have the same initial endowment y and simultaneously choose to contribute to a public good. If player 1 contributes C1, player 2 contributes c2, and player 3 contributes c3, then player i's monetary payoff is xi (C1, C2, C3) = y − ci+m × (c1 + C2 + C3) where 3 <m< 1.
Transcribed Image Text:Consider the following 3-player public goods game. Players 1, 2, and 3 have the same initial endowment y and simultaneously choose to contribute to a public good. If player 1 contributes C1, player 2 contributes c2, and player 3 contributes c3, then player i's monetary payoff is xi (C1, C2, C3) = y − ci+m × (c1 + C2 + C3) where 3 <m< 1.
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