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Suppose that there are two people living on a block who benefit from street lights S and their private consumption ci for i = 1,
Suppose that there are two people living on a block who benefit from street lights S and their private consumption ci for i = 1, 2. Suppose that the price of street lights and private consumption is normalized to 1 and each person is identical with an income of 100 dollar to be spent on street lights and private consumption. The utility function of each i is given by ui(ci, S) = ci 2 ln S where S is the total number of street lights provided.rivate provision of public good: Suppose that each person independently buys street lights an amount that is denoted by si where S = si si for i = 1, 2. Write down the individuals problem. Then fond the total number of street lights provided by private provision, call it S
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