Question
As1.sume there are two people deciding what to do for the next four hours. They can spend that four hours watching a Mario Bava marathon
As1.sume there are two people deciding what to do for the next four hours. They can spend that four hours watching a Mario Bava marathon of Black Sunday and Blood and Black Lace or spend up to four hours picking up litter (a public good). Assume PG1, PG2 is the number of hours spent picking up litter for person 1 and 2 respectively. The expected utility for person 1 is: (2 + PG1 + PG2) (4 - PG1). The expected utility for person 2 is: (2 + PG1 + PG2) (4 - PG2). Set up a matrix when each player can choose 0, 2, or 4 hours of picking up litter. For example if both pick up litter for 2 hours player 1's payoff is (2+ 2 + 2)(4 - 2) = 12.
In a general sense, explain player 1's utility function (or player 2's!). Is there a Nash Equilibrium? Explain how you came to your answer. Find a mixed strategy Nash Equilibrium. Explain precisely your answer.
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