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The model Agents: Ben and Jerry Goods: Fireworks (a public good) and a private good X. Prices: Px=PF=1 Total amount of fireworks provided: F=FB+FJ Each
The model Agents: Ben and Jerry Goods: Fireworks (a public good) and a private good X. Prices: Px=PF=1 Total amount of fireworks provided: F=FB+FJ Each individual i has a utility function: U=2log(Xi)+log(FB+FJ) The budget constraint of each individual is: Xi+Fi=100. Suppose Ben and Jerry provide the public good on their own, with no government intervention. Find the Nash equilibrium of this game
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