Consider the Acid Rain Game with new payoffs below. Total net benefits are given in the payoff matrix below. Country B O

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Consider The Acid Rain Game With New Payoffs Below Total Net Benefits Are Given In The Payoff Matrix Below Country B O 1 (67.15 KiB) Viewed 13 times

Consider the Acid Rain Game with new payoffs below. Total net benefits are given in the payoff matrix below. Country B O $90 O $96 O $120 Low Abatement O $108 High Abatement Country A Low Abatement A: $20 B: $10 A: $21 B: $7 Imagine Country B discounts future profits at d=0.9. If you know that Country A will use the grim reaper punishment, what is the present value of net benefits from deviating for Country B? High Abatement A: $14 B: $18 A: $22 B: $12