Question: Question is below In a large economics class at NC State, students have assigned seats. You are forced to sit next to a student who

Question is below

Question is below In a large economics class at NC State, students

In a large economics class at NC State, students have assigned seats. You are forced to sit next to a student who does not shower on a regular basis. By not showering, the student sleeps more, but you suffer by having to smell his (or her) unpleasant body odor. As a function of how frequently your fellow student showers, the value to each of you is: Frequency of Showering Every day Every 2 days Every 3 days Every 4 days Every 5 clays Every 6 days Every 7 clays Value to fellow student 410 ~55 -$2 $0 $4 $8 $10 Value to you 50 ~52 -$4 $10 415 $20 425 Imagine that you complain to your instructor, and s/he informs you that your fellow student has the right to shower as frequently as s/he wishes. In the absence of transaction costs, we would expect you to bribe your fellow student to shower more frequently (Hint: this payment will encourage your fellow student to shower at the socially efficient rate)

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