📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!


    Question

    N people guess an integer between 1 and 100, and the

    winner is the player whose guess is closest to 2 times the mean of the guesses. What is the equilibrium in this case?
    A All saying 100 Correct Answer Incorrect Answer
    B All saying 50 Correct Answer Incorrect Answer
    C All saying 25 Correct Answer Incorrect Answer
    D All saying 75 Correct Answer Incorrect Answer
    E Can’t say Correct Answer Incorrect Answer

    Solution

    Each player’s best response is to announce a number closest to twice the average, subject to the Constraint of the 100. So, each person wants to name a number above average, and so nothing is stable except all saying 100.

    Practice Next
    ask-question

    Not sure which exam is best for you Talk to our expert

    Get My Free Call