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Consider a voluntary public goods provision game. There are two players, each is endowned with 20 USD. Each player can use money in two ways:

Consider a voluntary public goods provision game. There are two players, each is endowned with 20 USD. Each player can use money in two ways: he can eitherkeepit to himself or he cancontributeit to a public goods fund. Money collected in the public goods fund from both players is muptiplied by 1.6 and then divided equally between both of them (no matter if the player has donated to the public goods fund or not he will still receive the money).

Draw the game table, find the NE. Is NE Pareto Efficient? What is the socially optimal outcome?

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