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. Three houses share exclusive access to a beach. The beach is dirty because trash has washed ashore. A beach clean up exercise costs $100

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. Three houses share exclusive access to a beach. The beach is dirty because trash has washed ashore. A beach clean up exercise costs $100 but since the beach is a common good to the three households, it has a value of $200 to each player. A beach clean-up company offers to take on the project and suggests that contributions be made to the project sequentially. First Household 1 will contribute some amount x1. Then after observing x1, Household 2 will contribute some amount, x2. Finally, after observing x1 and x2, Household 3 will choose its contribution, x3. If x1 + x2 + x3 2 100, then the project is completed and any extra money is kept by the company. If x1 + x2 + x3

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