Consider two fishers John (J) and Amanda (A) are both fishing at a public lake. Let us use the following notation:

yi = number of fish caught by i = J, A over some given period. ez = amount of time that i = J, A spend fishing, measured in fraction of the time period (effort level). Tti = the net payoff of fisher i= J, A. Let's assume that Ti = yi - ei 2 where yA = 10(1 - 0.1e) )eA and y, = 10(1 - 0.1eA)e.Note that the term 2 denote the cost of effort. Assume the reservation payoff for fishers are Tti , TA . I. Find the Nash equilibrium effort level. II. What is the efficient effort level