Question
Three people simultaneously choose an integer between 0 and 9 (i.e. 0,1,2,3. . .). If they all three choose the same, then each person receives
Three people simultaneously choose an integer between 0 and 9 (i.e. 0,1,2,3. . .). If they all three choose the same, then each person receives a number of dollars equal to the integer chose. If any are different then they must pay a number of dollars equal to the integer they chose.
a. What are the pure strategy NE of this game?
b. Now let them choose real numbers between 0 and 9 (i.e. 0,0.1,0.2,. . .1,1.1. . .) . Now a player is paid their choice if it is equal to 1/2 of the average choice made by the other players. If they do not choose 1/2 of the average, then they pay an amount equal to their choice. What are the pure strategy NE of this game?
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a In the first scenario where players choose integers between 0 and 9 the pure strategy Nash Equilib...Get Instant Access to Expert-Tailored Solutions
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Statistics The Art And Science Of Learning From Data
Authors: Alan Agresti, Christine A. Franklin, Bernhard Klingenberg
4th Edition
133860825, 321997832, 133860914, 978-0321997838
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