Reference no: EM131294216 , Length:
Consider a guessing game with ten players, numbered 1 through 10. Simultaneously and independently, the players select integers between 0 and 10. Thus player i 's strategy space is Si = (0, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 ), for i = 1, 2, . . . , 10. The payoffs are determined as follows: First, the average of the players' selections is calculated and denoted a. That is,
a = (s1 + s2 + ........ +s10)/10
where si denotes player i 's selection, for 1 = 1, 2, . , 10. Then, player i 's payoff is given by ui; = (ai - 1)si.
What is the set of rationalizable strategies for each player in this game?
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