Question: * Please draw a chart or graph if necessary. * Please fully explain the solution. Two agents in the economy who decide how much to

* Please draw a chart or graph if necessary.

* Please fully explain the solution.

Two agents in the economy who decide how much to contribute for the public good. Their initial endowment could be: gi = { 0, 2, 4 }. The , Utility function looks like , Ui = 2G0.5 + xi , where xi = unit of private consumption. Where each consumer is endowed with 10 units (w1, w2) = (10,10)

1- Draw the simultaneous move game for the payoff utility depending on each agents contribution for the public good

2- Is there any PSNE based on that?

3- What will be the socially optimal level of public good?

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