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Recall that in our common pool resource game, groups of n (typically 3) players share a resource where the size, f (fish), is not known.

Recall that in our common pool resource game, groups of n (typically 3) players share a resource where

the size, f(fish), is not known. Each group member j attempts to catch cj units of fish.

Decisions are made independently and anonymously. If (c1 + c2 + c3 < f), there is enough fish and each

group member receives profit equal to their attempted catch; Otherwise the resource is destroyed and all

group members get nothing. For all group sizes the number of fish is a random variable drawn from a

uniform distribution over support [0, 20n]. Expected profits for individual j are equal to their attempted

catch cj times the probability that there are enough sh P(c1+ c2 + c3 < f)

E[profitj ] = cjP(c1 + c2 + c3 < f) = cj*(20n - c1 - c2 - c3)/20n

(a) What is the equilibrium prediction for catch size for a group of size 3?

(b)what is the socially optimal total catch size?

(c)partition the data by variable "rematching" and calculate the average "choice" (catch size)

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