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Amount of money each student puts

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Reference no: EM132357253

Suppose that 3 students are told to put any amount of money between (and including) $0 and $100 in an envelope. Their professor then collects the envelopes and proceeds along the following rule, which is known to everyone. All envelopes are emptied into a box and if it contains $30 or more the professor will throw another $15 into the box and split all the money evenly among the students. If the total is less than $30, then the professor will keep the money. Denote as ei the amount of money each student puts into his/her envelope and find all symmetric Nash equilibria (where e1=e2=e3). What kind of game is this?

Reference no: EM132357253

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