The answer of the following game theory question sheds light on the issue why no one speaks against government in China.<\/p>\n
Question:<\/p>\n
Two players, A and B, are bidding in a blind auction. They each write down a bid and give it to me.The winner (higher bid) pays his bid to me and nothing else happens to him. The loser has to give me $10. He does not pay his bid.
\nAssume for now, that the bids have to be integers. For example, if player A writes $5 and player B writes $3, then player A pays me $5 and player B pays me $10.
\nIn case of a tied bid, I flip a coin to determine the winner. The winner pays the bid, the loser pays $10.
\nWith two rational players, what would their bidding strategies be?<\/p>\n
(from Jason’s blog)<\/p>\n","protected":false},"excerpt":{"rendered":"
The answer of the following game theory question sheds light on the issue why no one speaks against government in China. Question: Two players, A and B, are bidding in a blind auction. They each write down a bid and … Continue reading