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?
Step by Step Solution
There are 3 Steps involved in it
a In the first scenario where players choose integers between 0 and 9 the pure strategy Nash Equilib... View full answer
Get step-by-step solutions from verified subject matter experts
