The game show Golden Balls aired on ITV from June 2007 to December 2009. In the final round, the two remaining contestants play for an amount of money W > 0.1. The last round works as follows: each candidate simultaneously chooses to Steal or Divide, without knowing what the other has chosen. If both contestants choose Steal, neither wins anything. If both contestants choose Split, they split the jackpot equally. If one contestant chooses Steal and the other chooses Split, the first contestant wins the entire jackpot and the second contestant wins nothing.

1. Find all Nash equilibria (pure strategy). Do the players have any weak or strictly dominant strategies? What is the most likely outcome of the game?

Answer rating: 100% (QA)

Nash Equilibria in Golden Balls There are two Nash Equilibria pure strategy in the Golden Balls final round Equilibrium 1 Both Choose Split Split Spli... View the full answer