Consider a game where each player picks a number from 0 to 60. The guess that is closest to half of the average of the chosen numbers wins a prize. If several people are equally close, then they share the prize. The game theory implies that (A) all players have dominant strategies to choose 0 (B) all players have dominant strategies to choose 30 (C) there is a Nash equilibrium where all players pick 0 (D) there is a Nash equilibrium where all players pick positive numbers   Behavioral data in such games suggests that (A) most subjects choose 0; (B) most subjects choose 30;(C) common answers include 30, 15, 7.5, and 0; (D) most subjects use randomization.

Question

Consider a game where each player picks a number from 0 to 60. The guess that is closest to half of

the average of the chosen numbers wins a prize. If several people are equally close, then they share the

prize. The game theory implies that

(A) all players have dominant strategies to choose 0

(B) all players have dominant strategies to choose 30

(C) there is a Nash equilibrium where all players pick 0

(D) there is a Nash equilibrium where all players pick positive numbers

 

Behavioral data in such games suggests that

(A) most subjects choose 0;

(B) most subjects choose 30;(C) common answers include 30, 15, 7.5, and 0;

(D) most subjects use randomization.

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