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10. Suppose two game-show contestants, Alex and Bob, each separately select one of three doors, numbered 1, 2, and 3. Both players get dollar prizes
10. Suppose two game-show contestants, Alex and Bob, each separately select one of three doors, numbered 1, 2, and 3. Both players get dollar prizes if their choices match, as indicated in the following payoff table: BOB 2 1 10, 10 0, 0 0, 0 ALEX 2 0, 0 15, 15 0, 0 3 0, 0 0, 0 15, 15 You may need to scroll left and right to see the full figure. 1. What are the Nash equilibria of this game? Which, if any, is likely to emerge as the focal point? Explain. 2. Consider a slightly changed game in which the choices are again doors 1, 2, and 3, but the payoffs in the two cells with (15, 15) in the table become (25, 25). What is the expected (average) payoff to each player if each flips a coin to decide whether to play 2 or 3? Is this outcome better than the outcome of both of them choosing 1 as a focal point? How should you account for the risk that Alex might do one thing while Bob does the other
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