DSE 2012 Game theory question

classic Classic list List threaded Threaded
4 messages Options
Reply | Threaded
Open this post in threaded view
|

DSE 2012 Game theory question

MohitG
This post was updated on .
QUESTION 24. Consider the following two-player game. The players simultaneously draw one sample each from a continuous random variable X, which follows Uniform[0; 100]. After observing the value of her own sample, which is private information (that is, opponent does not observe it), players simultaneously and independently choose one of the following: SWAP, RETAIN. If both the players choose SWAP then they exchange their initially drawn numbers. Otherwise, if at least one person chooses RETAIN, both of them retain their numbers. A player earns as many Rupees as the number she is holding at the end of the game.
Find the probability that the players will exchange their initially drawn numbers:
(a) 1
(b) 1/2
(c) 1/3
(d) 0
Reply | Threaded
Open this post in threaded view
|

Re: DSE 2012 Game theory question

Aranya
It is d)0. As both the players know that the other player will choose "SWAP" it he gets sufficiently small amount both will not choose "SWAP" as it will give him a low amount always.
Reply | Threaded
Open this post in threaded view
|

Re: DSE 2012 Game theory question

MohitG
Hey thanks a ton Aranya
Reply | Threaded
Open this post in threaded view
|

Re: DSE 2012 Game theory question

Aranya