1. (4) Say there are ten students. How many of each colour will each student
keep and contribute? (Record your predictions in the following table.)
0.8. PUBLIC GOODS GAMES AND TORTS xxi
keep keep contibute contribute
Student black red black red
1
2
3
4
5
6
7
8
9
10
Totals
2. (2) Explain why you think this is a reasonable guess bout student behaviour.
3. (2) In the final column of the table above calculate the payoff for each student
4. (1) What is the maximum that each student could receive?
5. (1) What is the minimum that each student could receive?
6. (1) What is the average payoff?
7. (4) Comment: what do you think of the outcome you came up with? Would
the experiment work out the same way if done in a class of nursing students?
A class of Commerce students? Is it a good outcome
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8. (4) There is a person who owns a swimming pool. The neighbours’ children
may sneak in an use it. They may also drown. Estimate dollar values for the
costs that could be involved for all parties.
9. Make up a payoff matrix for a legal regime of strict liability with contributory
negligence.
Table 10: Strict liability with contributory negligence
Pool owner
No Care Due Care
Neighbour No Care
Due Care