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** Problem 3 Late one night several neighborhood residents hear noises outside their homes and look out the window. They see passing rufans starting to
** Problem 3 Late one night several neighborhood residents hear noises outside their homes and look out the window. They see passing rufans starting to vandalize local property and cause damage to cars in the street. Each resident has to decide what to do. Doing nothing is easy, but if no one does anything a lot of damage will be done. Calling the police takes only a little bit of effort, but police response is slow, so there still will be some damage if no one does anything beyond that. Running outside and yelling is another option and it is very effective at minimizing damage, but it involves a lot of effort andiif you're the only one doing itieven some risk of retribution. Formalize this strategic situation as a normalform game. Include just enough to capture the key elements of the strategic environment, but be precise and detailed enough so that we could apply a solution concept to analyze the game
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