Question
Suppose that the village of Mosirae is made up of 500 citizens, and the citizens decide whether to protest. The benefit for the protest is
Suppose that the village of Mosirae is made up of 500 citizens, and the citizens decide whether to protest. The benefit for the protest is 50*m, where m is the number of citizens participating in the protest. The benefits of protests are shared by everyone who participates in the protests. Thus, the individual's benefit is 50*m. Suppose there are three types of people in society. There are 100 radicals in the village of Mosirae, and the cost of each protest is 6,000 per person. In addition, 100 moderates each incur a cost of 8,000 by protest. Finally, there are 300 bourgeois who are still backlashing, but they have the most to lose if the revolution fails. Therefore, the cost of participating in the protest is 20,000. If you do not participate in the protest, the payoff is zero. Remuneration for participation in protests is 50*m minus costs. Find the Nash Equilibrium.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started