Game Theory:
Two people are engaged in a joint project. If each person i puts
in the effort xi ? [0, 1], which costs her
c(xi), the outcome of the project is worth
f(x1, x2). The worth of the project is split
equally between the two people, regardless of their effort levels.
Find the Nash equilibria of the game when f(x1,
x2) = 3x1x2 and c(xi) =
x2i . Is there a pair of effort levels that
yields higher payoffs...