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Unformatted text preview: things, 9  a, and an interaction term combining both of these terms, (9a)(a+b). Thus her payoff, x = a + b + 9 a + (9a)(a+b) = b + 9 +(9a)(a+b). Similarly, Bobs payoff is given by y = a + b + 12 b + (12b)(a+b) = a + 12 +(12b)(a+b). Find the Nash Equilibrium contributions. Are these contribution levels Pareto Efficient? If not, find the Pareto Efficient levels of contributions....
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 Spring '07
 Emre

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