ISI 2015 PEB NO 2

[Jim_Moriarity]

In question 2

1. Bribe rate I got =0.80. The price won't exist as such. The Social Welfare =0.12.
2. We consider the output constraint as 0.4 so price would be 0.6. The current bribe rate would be 0.2
3. Can't do it.
Please share your results.
Regards,
Jim.

[kk]

how did u get the equilibrium bribe??