Consider a game where each player picks a number from 0 to 60. The guess that is closest to half of the average of the chosen numbers wins a prize. If several people are equally close, then they share the prize. The game theory implies that (A) all players have dominant strategies to choose 0 (B) all players have dominant strategies to choose 30 (C) there is a Nash equilibrium where all players pick 0 (D) there is a Nash equilibrium where all players pick positive numbers Behavioral data in such games suggests that (A) most subjects choose 0; (B) most subjects choose 30;(C) common answers include 30, 15, 7.5, and 0; (D) most subjects use randomization.
Consider a game where each player picks a number from 0 to 60. The guess that is closest to half of the average of the chosen numbers wins a prize. If several people are equally close, then they share the prize. The game theory implies that (A) all players have dominant strategies to choose 0 (B) all players have dominant strategies to choose 30 (C) there is a Nash equilibrium where all players pick 0 (D) there is a Nash equilibrium where all players pick positive numbers Behavioral data in such games suggests that (A) most subjects choose 0; (B) most subjects choose 30;(C) common answers include 30, 15, 7.5, and 0; (D) most subjects use randomization.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Consider a game where each player picks a number from 0 to 60. The guess that is closest to half of
the average of the chosen numbers wins a prize. If several people are equally close, then they share the
prize. The
(A) all players have dominant strategies to choose 0
(B) all players have dominant strategies to choose 30
(C) there is a Nash equilibrium where all players pick 0
(D) there is a Nash equilibrium where all players pick positive numbers
Behavioral data in such games suggests that
(A) most subjects choose 0;
(B) most subjects choose 30;(C) common answers include 30, 15, 7.5, and 0;
(D) most subjects use randomization.
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