Question
Suppose that the share of total production consumed by player i is x / x+(n1)y, where x is player i's level of conflict and y
- Suppose that the share of total production consumed by player i is x / x+(n1)y, where x is player i's level of conflict and y is the level of conflict chosen by the other n 1 players. Thus, utility to player 1 is u = (x / x +(n1)y) A[nw-x-(n-1)y], where w _ 0 the endowment of each player and A _1 is a technology parameter. q: Assume that each player's equilibrium production is Ak = A(w - x*).
- Show your equilibrium utility u* varies with n.
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Microeconomics An Intuitive Approach with Calculus
Authors: Thomas Nechyba
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