Consider a community inhabited by n goat-farmers, n > 1, each of whom owns goats that...

Consider a community inhabited by n goat-farmers, n > 1, each of whom owns goats that graze on a common field. If Farmer i, i = 1, . . . , n, sends gi goats to the field, then he/she earns

πi(g1, . . . , gn) = giV (G) − 10gi, where G = g1 + · · · + gn, and V (G) = 100 − G.

(a) What is the total number of goats grazing in the field in a Nash equilibrium?

(b) Find the number of goats grazing if the field is owned by a single farmer.

(c) Why is your answer in part (a) larger than your answer in part (b)?

Expert Solution

Rahul Sunny answered 2 years ago

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