Y6

\fFive people are separately trying to decide how much to donate toward provision of a public good, whose value will be shared by each person. Each person has up to $100 to donate. When someone donates $1, they lose it and everyone -- including the donor -- gains value equal to 25 cents (for $1.25 total). Everyone simultaneously and privately decides how much to donate. How much does each person donate? Put differently, what is each person's equilibrium donation? Assume that each person is only interested in the value which accrues to them, either by holding money or by receiving the value of other donations. For example, if each person donates $20, they go down to $80 each. But when $100 are donated toward provision of the public good, then everyone gains $25 in value. So each person would ultimately receive $105 in value