Question
Students A and B decide whether to clean the dormitory. Regardless of whether the other party participates, the cleaning cost for each student is 8;
Students A and B decide whether to clean the dormitory. Regardless of whether the other party participates, the cleaning cost for each student is 8; and the benefit for each student from cleaning is 5 times the number of participants.
(a) Please use a game theory to briefly describe the above scenario, (that is to calculate the revenue for different strategies)
(b) Draw the payoff matrix, find the Nash equilibrium.
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Macroeconomics A European Perspective
Authors: Olivier Blanchard, Alessia Amighini, Francesco Giavazzi
4th Edition
1292360895, 9781292360898
