Re: DSE 2012 QUE 24

Posted by dhruv on Jun 20, 2015; 6:05am
URL: http://discussion-forum.276.s1.nabble.com/DSE-2012-QUE-24-tp7598152p7598174.html

Solve it using game theory. Consider two persons A and B. There are three possibilities either both get same number, or A get greater number than B or B get greater number than A. In case 1, they will have same payoffs if they swap or retain  but in other cases after swapping one person will be worse off and other would be better off. So, retain becomes the dominant strategy and hence there is ) probability that they will swap.