B3) We have a group of three friends: Kramer, Jerry and Elaine. Kramer has a $10 banknote that he will auction off, and Jery and Elaine will be bidding for it. Jeny and Elaine have to submit their bids to Kramer privately, both at the same time. We assume that both Jerry and Elaine only have $2 that day, and the available strategies to each one of them are to bid either $0, $1 or $2. Whoever places the highest bid, wins the $10 banknote. In case of a tie (that is, if Jerry and Elaine submit the same bid), each one of them gets $5. Regardless of who wins the auction, each bidder has to pay to Kramer whatever he or she bid.
B3) We have a group of three friends: Kramer, Jerry and Elaine. Kramer has a $10 banknote that he will auction off, and Jery and Elaine will be bidding for it. Jeny and Elaine have to submit their bids to Kramer privately, both at the same time. We assume that both Jerry and Elaine only have $2 that day, and the available strategies to each one of them are to bid either $0, $1 or $2. Whoever places the highest bid, wins the $10 banknote. In case of a tie (that is, if Jerry and Elaine submit the same bid), each one of them gets $5. Regardless of who wins the auction, each bidder has to pay to Kramer whatever he or she bid.
Chapter8: Game Theory
Section: Chapter Questions
Problem 8.8P
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