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Three students want to order pizza for dinner and they have decided to play the following contribution game in order to collect the money. Each student takes turns in order to place money inside a jar. If at least two students contribute the pizza can be ordered. The students payoffs are as follow:4 if a student does not put money in the jar but the other two do.3 The student puts money in the jar and at least another student contributes also.2 if he/she does not put money in the jar and only one other student contributes.1 if he/she is the only student contributing.
a) If you were advising one of these students, would you advise them to place money in the jar first, second or last?b) What is the Nash equilibrium of the game?
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