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A group of senior managers play the following game. Everyone chooses an integer between 0 and 100. The winner is the person whose number is
A group of senior managers play the following game. Everyone chooses an integer between 0 and 100. The winner is the person whose number is closest to 3/4 of the average of all numbers submitted. In case of a tie, players equally share a money prize.
A. Managers select the Nash Equilibrium strategy.
B. Players exhibiting level 1 reasoning will bid 50.
C. If there are four players who submit 0, 10, 20, and 50, then two players will share the prize.
D. If player 1 selects zero, the best response of player 2 is to select any positive number.
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