Multiple Choice

A community of four farmers relies on a shared irrigation system. Each farmer must decide independently whether to contribute to its annual maintenance. If a farmer contributes, they incur a personal cost, but the overall efficiency of the system increases, benefiting all four farmers. The greatest benefit for the entire group is achieved when all four contribute. However, the highest individual payoff for any single farmer occurs when they do not contribute, but the other three do. Given this strategic structure, which of the following policy changes would most effectively alter the farmers' incentives to achieve the best outcome for the group?

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Updated 2025-09-28

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