A Small Community Has 10 People, Each of Whom Has

question 24

Multiple Choice

A small community has 10 people, each of whom has a wealth of $2,000.Each individual must choose whether to contribute $100 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 .65 times the total amount of money contributed by individuals in the community.

• A)This game has a dominant strategy equilibrium in which all 10 citizens contribute $100 to support public entertainment.
• B)This game has two Nash equilibria, one in which everybody contributes $100 and one in which nobody contributes $100.
• C)This game has no Nash equilibrium in pure strategies, but has a Nash equilibrium in mixed strategies.
• D)This game has a Nash equilibrium in which 5 people contribute $100 and for public entertainment and 5 people contribute nothing.
• E)This game has a dominant strategy equilibrium in which nobody contributes anything for public entertainment.

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Definitions:

Aristotle

An ancient Greek philosopher and polymath, whose extensive writings cover various subjects, including physics, biology, ethics, politics, metaphysics, and logic, significantly influencing Western intellectual history.

Kant

Immanuel Kant, an 18th-century German philosopher known for his work in epistemology, ethics, and aesthetics, emphasizing the role of reason in understanding the world.

Good Will

A will without ulterior motive, motivated solely by the intention to do one’s duty.

Selfishness

The act or practice of placing one's own needs or desires above the welfare of others.