Scenario 13.7 Consider the Game Below About Funding and Construction of a of a Dam

question 113

Multiple Choice

Scenario 13.7
Consider the game below about funding and construction of a dam to protect a 1,000-person town. Contributions to the Dam Fund, once made, cannot be recovered, and all citizens must contribute $1,000 to the dam in order for it to be built. The dam, if built, is worth $70,000 to each citizen.
-In the game in Scenario 13.7, the strategy pair that pays:

• A) $69,000 to each player is the only equilibrium.
• B) ($0, -$1000) is the only equilibrium.
• C) (-$1000, $0) is the only equilibrium.
• D) $0 to each player is the only equilibrium.
• E) $69,000 to each player and the strategy pair that pays $0 to each player are equilibria.

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