The game Friend or Foe (Friend or Foe) was broadcast on North American TV for two seasons between 2002 and 2003. The game worked as follows. Two teams of two players are formed and compete in a question and answer game to form a “trust fund” for the pair. This fund can accumulate amounts between $200 and $20,000. After the questioning stage, the winning pair divides the fund amount as follows. Each of the pair simultaneously chooses to classify the other as friend or foe. If both choose friend, the fund is split evenly. If one chooses friend and the other enemy, the one who chose enemy wins everything and the other nothing. If both choose enemy, both receive $0. To answer the following questions, suppose that a pair of “X” and “Y” managed to raise a fund of $16,400. All stages of the game, including the choices of each player, were broadcast live. QUESTION: Does this game have any dominant strategy? Explain your answer.
The game Friend or Foe (Friend or Foe) was broadcast on North American TV for two seasons between 2002 and 2003. The game worked as follows. Two teams of two players are formed and compete in a question and answer game to form a “trust fund” for the pair. This fund can accumulate amounts between $200 and $20,000. After the questioning stage, the winning pair divides the fund amount as follows. Each of the pair simultaneously chooses to classify the other as friend or foe. If both choose friend, the fund is split evenly. If one chooses friend and the other enemy, the one who chose enemy wins everything and the other nothing. If both choose enemy, both receive $0. To answer the following questions, suppose that a pair of “X” and “Y” managed to raise a fund of $16,400. All stages of the game, including the choices of each player, were broadcast live.
QUESTION: Does this game have any dominant strategy? Explain your answer.
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