Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

About the game theory 13. A billionaire enters your classroom and plunks down $1 million on a table. He says that he's here to give

About the game theory

image text in transcribed
13. A billionaire enters your classroom and plunks down $1 million on a table. He says that he's here to give away money to the least greedy person in the class. The procedure is that all 30 of the students are to write down an integer between 1 and 1,000,000. Whoever writes down the lowest number walks away with an amount of money equal to his or her number. If two or more students write down the same number, and it was the lowest among all students, then those students will equally share the amount that they wrote down. Assume each student's payoff equals how much money he or she wins. a. Assuming students play according to Nash equilibrium, how much of that $1 million does the billionaire give away? Now suppose the student who wrote down the lowest lone number receives an amount equal to that number. If there is no lone number-that is, every number submitted by a student was also submitted by at least one other student-then no money is distributed. b. Find a Nash equilibrium in which the amount paid out is $1. c. Find a Nash equilibrium in which the amount paid out is $15

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing

Authors: Philip R Cateora

13th Edition

0073080063, 9780073080062

More Books

Students also viewed these Economics questions

Question

Cite ways to overcome fear of success.

Answered: 1 week ago

Question

5. It is the needs of the individual that are important.

Answered: 1 week ago