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Two neighbouring farmers must each decide whether to contribute to a fence that separates their properties. The fence costs a total of $20. Both farmers
Two neighbouring farmers must each decide whether to contribute to a fence that separates their properties. The fence costs a total of $20. Both farmers currently have a profit of $30 each. With a fence to keep each farmer's animals from wandering onto the other's property, both farmers would experience a $15 rise in profits.
(a)Draw the payoff matrix and discuss the possible outcomes.
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