Consider a beauty-contest game in which n players simultaneously pick a number between zero and 100 inclusive; the person whose number is closer to half of the average number wins a prize. What is the unique Nash equilibrium of this game? What number will a level-3 thinker pick?
Consider a beauty-contest game in which n players simultaneously pick a number between zero and 100 inclusive; the person whose number is closer to half of the average number wins a prize. What is the unique Nash equilibrium of this game? What number will a level-3 thinker pick?
Chapter8: Game Theory
Section: Chapter Questions
Problem 8.1P
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Consider a beauty-contest game in which n players simultaneously pick a number between zero and 100 inclusive; the person whose number is closer to half of the average number wins a prize.
What is the unique Nash equilibrium of this game?
What number will a level-3 thinker pick?
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