Question
There are five people in a group. Each of them has 10 tokens which have to be invested in a private good or a public
There are five people in a group. Each of them has 10 tokens which have to be invested in a private good or a public good. For each token invested in the private good, the investor alone gets 20. For each token invested in the public good, each of the five group members gets 10. So, for instance, if everyone invests all their tokens in the private good, each group member gets 200 in total. If everyone invests all their tokens in the public good, each group member gets 500 in total. What are the five people's decisions in the pure strategy Nash equilibrium (equilibria) of this game?Explain your answer.
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