Question
GAME THEORY QUESTION Ahmet and Betl simultaneously call out one of the colors 'white' or 'red'. If they have both chosen 'white' Ahmet wins the
GAME THEORY QUESTION
Ahmet and Betl simultaneously call out one of the colors 'white' or 'red'. If they have both chosen 'white' Ahmet wins the game and he receives 3 TL from Betl. If the chosen colors are different, then Betl wins and Ahmet pays 2 TL to Betl. If they both choose 'red', then there are three possibilities:
- with probability 1/3, game terminates without any payement,
- with probability 1/2, game is played once more,
- with probability 1/6, players switch their roles and the game is played once more.
Find value of the game and determine the minmax strategies of players.
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