Playing a one-stage guessing game

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Alice and Barbara are playing a one-stage guessing game. Each must choose a number between 1 and 8 (inclusive). Alice’s target is to match Barbara’s number. Barbara’s target is to name twice Alice’s number. Each receives $10 minus a dollar penalty that is equal to the absolute difference between her guess and her target. Solve this game by iteratively deleting dominating strategies. What will Alice and Barbara choose?

Reference no: EM13978513

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