Question: Please send all the steps and calculations with complete explanations. Please show the step-by-step solution diagrammatically or graphically.(If needed) Two agents in the economy who

Please send all the steps and calculations with complete explanations.

Please show the step-by-step solution diagrammatically or graphically.(If needed)

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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