2. Consider a simultaneous-move auction in which two players simultaneously choose bids which must be in nonnegative integer multiples of one cent. The higher bidder wins a dollar bill. If the bids are equal, neither player receives the dollar. Each player must pay his/her own bid whether or not he or she wins the dollar. Each player's payoff is simply the net winnings. Construct a symmetric mixed-strategy equilibrium in which every bid less than 1.00 has a positive probability.

2. Consider a simultaneous-move auction in which two players simultaneously choose bids which must be in nonnegative integer multiples of one cent. The higher bidder wins a dollar bill. If the bids are equal, neither player receives the dollar. Each player must pay his/her own bid whether or not he or she wins the dollar. Each player's payoff is simply the net winnings. Construct a symmetric mixed-strategy equilibrium in which every bid less than 1.00 has a positive probability.

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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