Using game theory, illustrate why it is difficult to finance public goods. Discuss the players, the strategies, and the payoff matrix. How might one solve the problem of financing public goods? Provide examples. Be sure to define important terms (e.g., public goods).

Also include in answer:

• An example of a game represented by a payoff matrix where the social optimum is not the competitive outcome in a public goods game
• Taxation as a solution to solve the public goods game (or an alternative solution)