Ed is working as part of a 5 person team. All members of the team can choose whether to 1 unit of effort or 0 units of effort, $e_{i}$. A unit of effort costs a member 1.5 units, $c_{i}$ and each team member is rewarded $\Sigma e_{i}$. That is, if all 5 members contribute $e_{i}=1$ then they will each receive $\Sigma e_{i}-c_{i}=5-1.5=3.5$. If Ed is selfish and he knows all of his team members are selfish, what will be Ed's pay-off.

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The Answer of Ed is working as part of a 5 person team. All members of the team can choose whether to 1 unit of effort or 0 units of effort, $e_{i}$. A unit of effort costs a member 1.5 units, $c_{i}$ and each team member is rewarded $\Sigma e_{i}$. That is, if all 5 members contribute $e_{i}=1$ then they will each receive $\Sigma e_{i}-c_{i}=5-1.5=3.5$. If Ed is selfish and he knows all of his team members are selfish, what will be Ed's pay-off.

Ed Is Working as Part of a 5 Person Team eie_{i}ei​

Ed Is Working as Part of a 5 Person Team $e_{i}$