Develop strategy profiles are pure strategy nash equilibria

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Assignment:

Two travelers purchase identical antiques while on a tropical vacation. Their luggage is lost on the return trip, and the airline asks them to make independent claims for compensation. In anticipation of excessive claims, the airline representative announces: We know that the bags have identical contents, and we will consider any claim m in (2,3,4,..., 100). You will each be reimbursed an amount that equals the minimum of the two claims submitted. If the two claims differ, we will also pay a reward of $2 to the person making the smaller claim and we will deduct a penalty of $2 from the reimbursement to the person making the larger claim.

Find all the strategy profiles that are pure strategy Nash equilibria.

Reference no: EM133253727

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