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Consider the game between a criminal and the government described in this chapter.
(a) Write the first-order conditions that define the players' best-response functions and solve them to find the best-response functions. Graph the best-response functions.
(b) Compute the Nash equilibrium of this game.
(c) Explain how the equilibrium levels of crime and enforcement change as c increases.
1024x768 Normal 0 false false false EN-US X-NONE X-NONE Introduction to M..
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