Question: Please help to figure out this question, thanks. This is the whole question. 1. Suppose rents are R. Expected rents are EA : pAR a:

Please help to figure out this question, thanks. This is the whole question.

Please help to figure out this question, thanks. This is the whole

1. Suppose rents are R. Expected rents are EA : pAR a: to A and EB : pBR y to B. (a) Suppose the probability A Wins is p4 = (2$)/(2$ + 3;) while the probability B Wins is p3 = y/(2LI: | y), where J: and y are expenditures to win the rentJ respectively by A and B. Solve for a: and y and solve social costs to get R. (b) Compare this With the case Where pA : m/ (:1: | y) and p3 : y/(zc | g). which is better for society and Why? Explain

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