(AGT11E3) [Game Theory] Mechanism Design Example: Public Good Project

[@JeanAlmeid]

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[@olympics3948]

I learned a lot

[@fatemehentezari2705]

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[@olympics3948]

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[@doredora9646]

I couldn't get why best response of Alice is not "Down" if Bob plays "Down"? Isn't is "Gas" better for Alice rather than "Coal" in state 1?

[@arkarupbasumallik]

Yes, it is. But it (down, down) will not be a Nash Equilibrium as playing 'down' won't be a best response for Bob when Alice plays 'down' as he prefers nuclear to gas in state 1.