When the decisions of one person have external impacts - or in the case of public goods - there is always the possibility that the "group" could arrive at an efficient outcome through simple cooperation. This can happen - but it also tempts fate as we may be relying on individuals to make decisions based on the social good as opposed to their individual good. Here are a couple of examples that I want you to think about before answering:

1. You are in a group of 20 people that all go out to eat at a nice restaurant. PRIOR TO ORDERING MEALS, the group has a choice of eithersplitting the bill equally or havingeach person paying for their individual meal. Will the average cost per meal be the same regardless of which strategy is employed? Explain.

2. Four roommates are thinking about hiring a $100 / week cleaning service.The roommates value this weekly service differently as follows:

• Josh values it at $20
• Joaquim values it at $40
• X A-12 values it at $30
• Apple values it as $20

Based on this on this set-up, discuss the following questions:

Shouldit by provided? What is your criteria?

Willit by provided? (There is no one correct answer here... just think through different scenarios). Use common sense as you think about how this might play out in the real world.