Question

A government can pursue three policies: x, y, or z. The monetary values attached
to these policies by two special interest groups, say A and B, are:
X
Interest Group A
Interest Group B
0
0
Y
3
-100
Z
-100
3
Suppose that the government employs a menu auction:
each interest group states, for each policy, the amount it is willing to pay to have the
government implement that policy. The government chooses the policy or which the sum
of the payments the groups are willing to make is the highest, and EACH group pays the
government the amount of money it is willing to pay for that policy,
Each interest group's payoff is the value it attaches to the policy minus the
payment it makes. All ties go to interest group A.
Show that the auction has a Nash equilibrium in which interest group A
announces that it will pay 3 for x, 6 for y, and 6 for z, and the government chooses
x-obtaining a revenue of 6.​

Answer 1

Answer:

hi

Explanation:

make me as a brainlist please plz ok