Question

In the following game, determine the maximum amount you would be willing to pay for the privilege of moving (a) first, (b) second, or (c) third: There are three players, you and two rivals. The player announcing the largest integer gets a payoff of $10, that announcing the second largest integer gets $0, and that announcing the third largest integer gets $5.

Maximum amount you would be willing to pay to go first: $  

Maximum amount you would be willing to pay to go second: $  

Maximum amount you would be willing to pay to go third: $  

Answer 1

Solution -

Maximum amount you would be willing to pay to go first: $ 0

Maximum amount you would be willing to pay to go second: $ 5

Maximum amount you would be willing to pay to go third: $ 10

Reason -

If you want to move to a third location, you can give yourself a $ 10 warranty by giving the name of an integer named First and Second Audience. If you move to another position, you know that Third Mover will nominate the Highest Integer, but you can guarantee $ 5 by manually nominating the minimum integer by the name designated by the first person.If you move first, another mover will give you an integer name less than that and the third audience will rank higher than you, so that you will not be able to earn anything.