please show work 2. In the town of Torrelodones, each of the N> 2 inhabitants ha

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please show work

2. In the town of Torrelodones, each of the N> 2 inhabitants has $100. They are told that t ey can all are contributed to the local K-Mart will match the private contributions so that the total amount to be divided is at is, each resident will get back a payment of $2F/N when the fund is divided. If the people in voluntarily contribute to a fund that will be evenly divided among all residents. If SF town care only about their own net incomes, in Nash equilibrium, how much will each person contribute to the fund? a. $0 b. $10 c. $20 d. $50 e. $100 n in game of Chicken. There are two possible strategies, Swerve and Drive

Explanation / Answer

Answer for the above question:

As per the provided information, the answer will be the first option A i.e, $0, because when people inthe town care only about their own net incomes in Nash equilibrium.

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