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?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.
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