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Two people decide whether to participate in producing some public good or not. If public good is produced, this gives utility 1 to everyone, irrespectively
Two people decide whether to participate in producing some public good or not. If public good is produced, this gives utility 1 to everyone, irrespectively of her contribution. Everyone has three options: 0 do nothing, 1 work at half strength, 2 work at full strength. If person i = 1, 2 works at full strength, she bears costs ci; if she works at half strength, then her costs are ci, where (0, 1) is a known parameter. For the public good production, it is sufficient that at least one person works at full strength, or both work at half strength. Costs ci are private information of player i, while the opponent knows only that it is drawn from the uniform distribution on [0,1]. Random values c1,c2 are drawn independently. Find all symmetric Bayesian-Nash equilibrium
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