Question: Same as Problem 16, except now payoff values of each person are a. If Smith and Jones are payoff maximizers and make their decisions individually,

Same as Problem 16, except now payoff values of each person are

a. If Smith and Jones are payoff maximizers and make their decisions individually, what will they do?

b. If Smith and Jones can make binding agreements with each other, what will they do?

c. How do your answers differ from Problem 16 and why?


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