申論題

3.A village has six residents, each of whom has acc cumulated savings of $100. Each villager can use this money either to buy a government bond that pays 15 percent interest per year or to buy a year-old goat, send it onto the common field to graze, and sell it after 1 year. The price the villager gets for the 2-year-old goat depends on the quality of the fleece it grows while grazing on the commons. That in turn depends on the animal's access to grazing, which depends on the number of goats sent to the common filed, as shown in the following table:

The villagers make their investment decisions one after another, and their decisions are public. The village committee votes to auction the right to graze goats on the common field to the highest bidder. Assuming villagers can both borrow and lend at 15 percent annual interest, the right sells for at auction will be