Every November, Smith and Jones each face the choice between burning their leaves or stuffing them into
Question:
a. If Smith and Jones are utility maximizers and make their decisions individually, what will they do?
b. How will your answer to part (a) differ, if at all, if Smith and Jones can make binding agreements with each other?
Now suppose the payoff matrix is as follows:
c. What will they do this time if they can make bindingagreements?
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