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Nash Equilibrium Assignment | Homework For You

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December 4th, 2019

In the town of Torrelodones, each of the N > 2 inhabitants has $100. They are told that they can all voluntarily contribute to a fund that will be evenly divided among all residents. If $F are contributed to the fund, the local K-Mart will match the private contributions so that the total amount to be divided is $2F .

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That is, each resident will get back a payment of $2F/N when the fund is divided. If people in town care only about their own net incomes, in Nash equilibrium, how much will each person contribute to the fund? Gets Economics homework help today

 

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