Business
Business, 13.10.2020 04:01, Webber07

Three players live in a town and each can choose to contribute to fund a streetlamp. The value of having a streetlamp is $3 for each player; the value of not having a streetlamp is $0. The mayor asks each player to contribute a dollar, but each player may agree to do so or not. (Each player contributes $1 or $0.) If at least 2 players contribute, the lamp will be erected; otherwise the lamp is not erected and the mayor keeps the money collected. (a) Write down the normal form of this game. Your game should have 8 strategy profiles: the lamp is erected in four of them, and is not erected in the other four. (b) Identify dominant strategies and dominated strategies, if any, for each player. (c) Which of the eight strategy profiles constitute a Nash equilibrium

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Three players live in a town and each can choose to contribute to fund a streetlamp. The value of ha...

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