A Small Community Has 10 People, Each of Whom Has

question 22

Multiple Choice

A small community has 10 people, each of whom has a wealth of $18,000.Each individual must choose whether to contribute $200 or $0 to the support of public entertainment for their community.The money value of the benefit that a person gets from this public entertainment is .80 times the total amount of money contributed by individuals in the community.

• A)This game has a Nash equilibrium in which 5 people contribute $200 and for public entertainment and 5 people contribute nothing.
• B)This game has no Nash equilibrium in pure strategies, but has a Nash equilibrium in mixed strategies.
• C)This game has two Nash equilibria, one in which everybody contributes $200 and one in which no-body contributes $200.
• D)This game has a dominant strategy equilibrium in which all 10 citizens contribute $200 to support public entertainment.
• E)This game has a dominant strategy equilibrium in which nobody contributes anything for public entertainment.