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Examples of game theory.

The city of Cabridge has a problem with illegal parking, Currently, the city has a fine of $20 for illegal parking. But only catches about 1/3 of the offenders. It is debating two proposal to deter illegal parking more effectively. One proposal is to leave the fine at $20, but to hire more meter-readers and raise the rate of apprehension to 2/3. Assume that all offenders are risk-averse.
a.Evaluate the two policies. Which one do you will have the greatest different effect on illegal parking? Explain? Explain.
b.Which one do you think will be the costly to implement? Explain.

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