B. Suppose from here on out that everyone values the reporting of crime differently, with person ns
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B. Suppose from here on out that everyone values the reporting of crime differently, with person n’s value of having a crime reported denoted xn
. Assume that everyone still faces the same cost c of reporting the crime. Everyone knows that c is the same for everyone, and person n discovers xn prior to having to decide whether to call. But the only thing each individual knows about the x values for others is that they fall in some interval 30,b], with c falling inside that interval and with the probability that xn is less than x given by P1x2 for all individuals.
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Related Book For
Microeconomics An Intuitive Approach With Calculus
ISBN: 9781337335652,9781337027632
2nd Edition
Authors: Thomas Nechyba
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