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Question 1

Consider the following contribution to public good as a prisoner's dilemma with the payoff matrix:

Person B | |||

Do not contribute | Contribute | ||

Person A | Do not contribute | A pays $0, receives $0, net gain $0 B pays $0, receives $0, net gain $0 |
A pays $0, receives $21, net gain $21 B pays $28, receives $21, net gain $-7 |

Contribute | A pays $28, receives $21, net gain $-7 B pays $0, receives $21, net gain $21 |
A pays $28, receives $42, net gain $14 B pays $28, receives $42, net gain $14 |

What is the dominant strategy for player A?

Hint

Box 1: Select the best answer

Do not contribute.

Question 2

What is the dominant strategy for player B?

Hint

Box 1: Select the best answer

Do not contribute.

Question 3

What is the Nash Equilibrium in this situation?

Hint

Box 1: Select the best answer

$0, $0