6. Two players each pick a positive integer between 1 and 100. If the numbers are identical, noone wins. If the numbers differ by 1, the one with the lower number pays 1 to the opponent. If the difference is at least 2, the one with the higher number pays 2 to the opponent. What is the NE? Hint: Draw a sketch of the game matrix (while you can't consider all 100 strategies, at least consider the lowest 5-6 numbers) and think about dominated strategies.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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6. Two players each pick a positive integer between 1 and 100. If the numbers are
identical, noone wins. If the numbers differ by 1, the one with the lower number pays 1
to the opponent. If the difference is at least 2, the one with the higher number pays 2
to the opponent. What is the NE? Hint: Draw a sketch of the game matrix (while you
can't consider all 100 strategies, at least consider the lowest 5-6 numbers) and think about
dominated strategies.
Transcribed Image Text:6. Two players each pick a positive integer between 1 and 100. If the numbers are identical, noone wins. If the numbers differ by 1, the one with the lower number pays 1 to the opponent. If the difference is at least 2, the one with the higher number pays 2 to the opponent. What is the NE? Hint: Draw a sketch of the game matrix (while you can't consider all 100 strategies, at least consider the lowest 5-6 numbers) and think about dominated strategies.
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