3.A village has six residents, each of whom has acc cumulated savings of $100. Each villager can use thismoney either to buy a government bond that pays 15 percent interest per year or to buy a year-oldgoat, send it onto the common field to graze, and sell it after 1 year. The price the villager gets for the2-year-old goat depends on the quality of the fleece it grows while grazing on the commons. That inturn depends on the animal's access to grazing, which depends on the number of goats sent to thecommon filed, as shown in the following table:

The villagers make their investment decisions one after another, and their decisions are public. Thevillage committee votes to auction the right to graze goats on the common field to the highest bidder.Assuming villagers can both borrow and lend at 15 percent annual interest, the right sells for at auctionwill be