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Tok Aba has a factory producing chocolates located at the upper stream of Bamboo River. At the lower stream of the river, Adudu owns a
Tok Aba has a factory producing chocolates located at the upper stream of Bamboo River. At the lower stream of the river, Adudu owns a freshwater fish farm. Tok Aba's chocolate factory pollutes the river and affects Adudu's fish production. It is a choice for Tok Aba whether to install a filter and for Adudu whether to install a treatment plant. Table 1 shows the profit of Tok Aba and Adudu in different situations.
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