Think about a voluntary contribution game with 9 players, in which each player receives 20 tokens. Suppose

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Think about a voluntary contribution game with 9 players, in which each player receives 20 tokens. Suppose M = 0.2 (where M is the rate at which the common pool increases when a player contributes to it). Let's use R to stand for a player's remaining tokens and C to stand for the number of tokens in the common pool. The dollar payoff is D = R + 0.2C, but players are altruistic and rank outcomes according to the value D + AD0, where A is a positive number and D0 stands for the total dollar payoff to every other player. The value of A differs from one player to another. Suppose A> 0.5. Will the players have a dominant strategy? What is it? What if A< 0.5?
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Microeconomics

ISBN: 978-1118572276

5th edition

Authors: David Besanko, Ronald Braeutigam

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