With regards to the public goods games, which of the following will likely lead to highest efficiency?

Question

Quizplus · Accepted Answer

Option A, where it costs $1 to punish someone else by $4, is likely to lead to the highest efficiency in public goods games. This is because the high cost imposed on defectors (those not contributing to the public good) for a relatively low cost to the punisher creates a strong deterrent against free-riding behavior, encouraging more cooperative and efficient contributions to the public good.

With Regards to the Public Goods Games, Which of the Following