Question: The table below characterizes a Hardin Dilemma / Commons Problem. Garret Small Medium Large Elinor Small (E, G) (4, 4) (E, G) (3, 6) (E,

  1. The table below characterizes a Hardin Dilemma / Commons Problem.

Garret

Small

Medium

Large

Elinor

Small

(E, G)

(4, 4)

(E, G)

(3, 6)

(E, G)

(1, 8)

Medium

(6, 3)

(5, 5)

(2, 7)

Large

(8, 1)

(7, 2)

(3, 3)

  1. (5 points) Find the Nash equilibrium and explain why it is a problem.

  1. (10 points) Provide an example of an ethical system that can solve the problem. (i) Enter the associated guilt (g) or virtue (v) payoffs into the game matrix, (ii) What level of g or v solves the problem? And (iii) identify the new equilibrium.

  1. (10 points, one paragraph) Briefly discuss how either sharing rules or privatization can solve commons problems when they are supported by internalized norms.

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