You, along with three strangers, see a burglar smash a store window and take a piece of jewelry. All of you could identify the perpetrator. As you leave the scene, you decide whether to call the police. Assume as common knowledge that the benefit from the criminal being apprehended is greater than the cost of becoming involved for each witness, and that there are 16 possible outcomes. What are the Nash equilibria of the game? What difficulties exist in reaching an equilibrium? What would you do if this actually happened?

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To analyze the situation we can consider it as a game where each person witness has two choices to call the police or not to call the police Lets deno... View the full answer