Question
Each of two roommates simultaneously decides whether to contribute $100 to buying a common dining table. (Roommates contribute either the full $100 or nothing; they
Each of two roommates simultaneously decides whether to contribute $100 to buying a common dining table. (Roommates contribute either the full $100 or nothing; they cannot contribute an intermediate amount. Also, they cannot change their minds after making the decision.) If both roommates contribute, so that they buy a $200 table, they both get an enjoyment benefit out of it that is worth $150. If one of them contributes, so that they buy a $100 table, they both get a benefit worth $75. If neither contributes, they do not buy a table and do not get the benefits. Draw the payoffs of the game in a 2 by 2 matrix and solve for the Nash equilibirum
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