What is the payoff of a person whose number is the highest

Reference no: EM13906873

(Guessing two-thirds of the average) Each of three people announces an integer from 1 to K. If the three integers are different, the person whose integer is closest to 2 of the average of the three integers wins $1. If two or more integers are the same, $1 is split equally between the people whose integer is closest to 2 of the average integer. Is there any integer k such that the action profile (k, k, k), in which every person announces the same integer k, is a Nash equilibrium? (If k ≥ 2, what happens if a person announces a smaller number?) Is any other action profile a Nash equilibrium? (What is the payoff of a person whose number is the highest of the three? Can she increase this payoff by announcing a different number?)

Game theory is used widely in political science, especially in the study of elec- tions. The game in the following exercise explores citizens' costly decisions to vote.

Reference no: EM13906873

Questions Cloud

Any excess cash is used to repay loans at month end : Foyert Corp. requires a minimum $ 30,000 cash balance. If necessary,

Cognitive and affective aspects of creativity : The cognitive and affective aspects of creativity may be its most important components. Which of these aspects is likely to have the greater effect on the other? Why

Snoopy cache systems and directory based systems : Illustrate how Snoopy Cache Systems and Directory Based Systems operate in the following scenario: Handraw the statuses of the three steps corresponding to the scenario for each system.

What is the significance of the word proportionate : What is the difference between the definition of a proportionate non-liquidating distribution and a proportionate liquidating distribution? What is the significance of the word proportionate?

What is the payoff of a person whose number is the highest : What is the payoff of a person whose number is the highest of the three? Can she increase this payoff by announcing a different number?

What was the absorption costing net operating income : Sproles Inc. manufactures a variety of products. Variable costing net operating income was $132,000 last year and its inventory decreased by 4,250 units. Fixed manufacturing overhead cost was $16 per unit. What was the absorption costing net operatin..

Explain the characteristics of an ethical dilemma : Explain the characteristics of an ethical dilemma

Indicate no entry in the general journal : On November 1, 2013, Athom Corporation purchased 5,000 television sets for its merchandise inventory from Sockk, a South Korean firm, at a total quoted cost of 600,000,000 won (W). Prepare all the journal entries for Athom Corporation's General Journ..

Determining the corresponding node labels : Use binary reflected Gray code (RGC) to determine how a 16-node linear array can be mapped to a 4-D hypercube. You must derive the 4-bit Gray codes and the corresponding node labels of a 4-D hypercube. Draw the mapping of the 16-node linear array ..

User Account

All Pages