Public Good Contribution: Three players live in a town, and each can choose to c

Question

Public Good Contribution: Three players live in a town, and each can choose to contribute to fund a streetlamp. The value of having the streetlamp is 3 for each player, and the value of not having it is 0. The mayor asks each player to contribute either 1 or nothing. If at least two players contribute then the lamp will be erected. If one player or no players contribute then the lamp will not be erected, in which case any person who contributed will not get his money back. Write down the normal form of this game.

Explanation / Answer

Normal form of the game

Yes represents when a player contributes 1 to the project No represents when a player contributes 0 to the project First payoff is for player 1, Second payoff is for player 2 and third payoff is for player 3 Player 1 Yes No Player 2 Yes No Yes No Yes (3,3,3) (3,3,3) (3,3,3) (0,0,-1) Player 3 No (3,3,3) (-1,0,0) (0,-1,0) (0,0,0) Player 2 Yes No Player 1 Yes No Yes No Yes (3,3,3) (3,3,3) (3,3,3) (0,0,-1) Player 3 No (3,3,3) (0,-1,0) (-1,0,0) (0,0,0) Player 3 Yes No Player 1 Yes No Yes No Yes (3,3,3) (3,3,3) (3,3,3) (0,-1,0) Player 2 No (3,3,3) (0,0,-1) (-1,0,0) (0,0,0)

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