Question
There are 213 students in ECOS3012. Each student must pick a real number x between 0 and 100 (including 0 and 100). Let y be
There are 213 students in ECOS3012. Each student must pick a real number x
between 0 and 100 (including 0 and 100). Let y be equal to 3
4 the average of everyone's
number. A student's payoff is equal to 1 if his number x is equal to y, and 0 if it isn't.
(a) Is there a Nash equilibrium in which all students pick the same number x = 50?
Explain why it is or isn't a Nash equilibrium. (4 points)
(b) Find all Nash equilibria of this game. Explain your answer. (8 points)
(c) Let's now change the rule. Suppose that a student's payoff is equal to 1 if his number
x is equal to y + 20, and 0 if it isn't. Find all Nash equilibria of this game. Explain your
answer. (8 points)
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