{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

310-2ps4

# 310-2ps4 - Economics 310-2 Spring 2009 Professor Je Ely...

This preview shows pages 1–2. Sign up to view the full content.

Economics 310-2 Spring 2009 Professor Jeff Ely Problem Set 4 Due April 27 1. ( Tragedy of the Commons ) There are n farmers who share access to a common plot of land. Each farmer has one cow and uses the land for grazing. The problem for the farmers is to determine how many hours each farmer will be able to use the land. Thus, an alternative is a list ( h 1 , h 2 , . . . , h n ) where h i denotes the number of hours that farmer i will be allowed to let his cow graze. Farmer i ’s valuation function is as follows. Farmer i has a value v i and if farmer i ’s cow grazes for h i hours, then farmer i ’s valuation is qh i v i where q is the quality of the land. The quality of the land in turn depends on how much it is being used. In particular, if H = j h j is the total number of cow-hours of grazing, the quality of the land is q ( H ) = 10 - H (in other words, each additinal hour a farmer allows his cow to graze lowers the quality of the land by one unit).

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern