One "design principle" that makes informal, community-based solutions to public goods and common resource problems more effective is:
A. the government setting clear rules for use.
B. individual pledges to self-monitor their actions.
C. clear distinctions between who is and is not allowed to access the resource.
D. All of these are important to the effectiveness of community-based solutions.
C. clear distinctions between who is and is not allowed to access the resource.
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What will be an ideal response?
Refer to Scenario 13.16. If the firms must choose their prices simultaneously,
A) both firms will buy gelato. B) both firms will buy yogurt. C) two pure strategy equilibria exist, one in which Gooi alone buys a gelato machine and one in which Ici alone buys a gelato machine. D) the game has no pure strategy equilibrium. E) the game has no mixed strategy equilibrium.