Electric Company E emits smoke, dirtying the wash at Lau

Electric Company E emits smoke, dirtying the wash at Laundry L. E earnsE earns$1,000 if it does not install scrubbers. L loses 0 if E does not installscrubbers. L earns $300 if E does install scrubbers. E can abate itspollution by installing scrubbers that would cost E 0. L can eliminateE’s externality by installing filters that would cost L $100. (how to Set up the social contract game showing the four possible outcomes of

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