Consider two vendors (let's call them A and B) selling their goods in adjacent stalls in a traditional market. Because of poor lighting at their end of the market, customers rarely stop to shop.The two vendors are discussing investing in additional lighting, which they anticipate could potentially increase their profits by 500$ each, monthly (profits= total revenues minus total costs including the cost of contributing to the lighting project).If only one contributes to the lighting project, but not the other, the one who does not contribute sees increased monthly profits of $750, while the one that contributes sees a monthly loss of $250.If neither contributes to the lighting project, they will continue earning the same profit as they do now (so additional profits are 0$ for both).

a)Based on the information provided above, depict the game in a 2x2 matrix with strategies "Contribute to project" "Do not contribute to Project".

b)Does any player have a dominant strategy, and if so, what is it and which player(s) and why?

c)Are there any Nash equilibria (what is it/are they) ?Why or why not?

d)Are there any institutional arrangements that could improve the outcome of this game, and if so what might they be?