Question: There are 3 partners, namely 1, 2, and 3. Simultaneously, each partner i puts effort xi [0, 1], producing an output level of x1, x2,
There are 3 partners, namely 1, 2, and 3. Simultaneously, each partner i puts effort xi [0, 1], producing an output level of x1, x2, x3, and incurs a cost of cx2 i to partner i. The partners share the output equally; the payoff of i is x1x2x3 3 cx2 i . (a) (2 points) Write this game formally in normal form. (b) (2 points) For c > 1 6 , compute all Nash equilibria. (c) (2 points) For c 0, 1 6 , compute all Nash equilibri
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