Question
Person A and B decide between amounts $100,$200,$300,$400 independently and in private. If both people choose the same amount they will get the amount chosen
Person A and B decide between amounts $100,$200,$300,$400 independently and in private. If both people choose the same amount they will get the amount chosen (e.g both 400 if both choose 400). If one chooses a value greater than the other they will receive the lower amount minus 100 and other person will receive lower amount plus 100 (e.g if person a chooses 300 and person b chooses 100, a will recieve 100-0 = $0, and person b will recieve 100+100 = $200) and vice versa(applies to both a and b).
A) How do I show writing 2 $400 is a weakly dominated strategy. (
b) How do I show that this game is (weakly-)dominance solvable.
C) Suppose now that both A and B can choose any amount divisible by 100 from $100 to $10, 000. What is the solution for this expanded version of the game? Is the Game-Theoretic prediction of play for this game plausible/intuitive?
(Detailed explanation please :) )
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