Question: Alex and Barry have a joint project. Each has first to decide whether to invest 1 0 or zero ( i . e . ,

Alex and Barry have a joint project. Each has first to decide whether to invest
10 or zero (i.e., not to invest) into the project. They make these individual
investment choices simultaneously. Once made, these investments are sunk. If
no-one invests, the project generates a total revenue of 0. If just one of them
invests, then the project generates a (gross) total revenue of 15. If both of
them invest, the project generates a (gross) total revenue of 30. Suppose that
both Alex and Barry are told how much the project has generated before they
make their share demands

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