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Business, 06.10.2019 10:30 Cherrykisses101

There is a rough neighborhood with n 2 residents. each resident has to decide whether to engage in the crime of theft. if an individual chooses to be a thief and is not caught by the police, he receives a pay- off of w. if he is caught by the police, his payoff is z. if he chooses not to commit theft, he receives a zero payoff. assume that w> 0> z. all n residents simultaneously decide whether or not to commit theft. the probability of a thief being caught equals m, where m is the number of residents who choose to engage in theft. thus, the probability of being more crimes to investigate. the payoff from being a thief, given that m 1 other people have also chosen to be thieves, is then Ñ…. find all nash equilibria

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