Albert, Jonas, and Stelios are lumberjacks who live next to a forest that is ope

Question

Albert, Jonas, and Stelios are lumberjacks who live next to a forest that is open to logging; in other words, anyone is free to use the forest for logging. Assume that these men are the only three lumberjacks who log in this forest and that the forest is large enough for all three lumberjacks to log intensively at the same time Each year, the lumberjacks choose independently how many acres of trees to cut down; specifically, they choose whether to log intensively (that is, to clear-cut a section of the forest, which hurts the sustainability of the forest if enough people do it) or to log nonintensively (which does not hurt the sustainability of the forest). None of them has the ability to control how much the others log, and each lumberjack only cares about his own profitability and not the long-term sustainability of the forest. Assume that as long as no more than one lumberjack logs intensively, there are enough trees to regrow the forest However, if two or more log intensively, the forest will become useless. Of course, logging intensively earns a lumberjack more money because he can sell more trees a private good an open-access qgood a public good a good likely to be produced by a natural monopoly The forest is an example of nonexclusive/exclusive and because it is rival/nonrival Suppose Jonas and Stelios both choose to log either nonintensively or intensively. Fill in Albert's most rational response in the following table, given Jonas and Stelios's action Jonas and Stelios's Action Log Nonintensively Log Intensively log nonintensive log intensively Albert's most rational response [log noninten siv log intensively

Explanation / Answer

A public good

Non-exlusive

Non- Rival

Log intensively

Log intensively

Outlaw Logging intensively

Only one lumber jack cannot stay with senitivity, Both cannot control the other, So they will both choose more profitl.

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