申論題

1.(15%) Two persons are involved in a situation where the public good, G, is privately provided. The utility function of each individual is denoted as u_i(G,x) = a_i InG + x_i, for all i = 1,2 where x is a private good. Denote gi as the amount of the public good contributed by the individual i such that G = g₁ +g₂. Each individual's budget constraint is shown as x_i + g_i = my. Assume a₁ ＜ a₂. How much will the individual 1 contribute, i.e. g₁, in equilibrium?