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Imagine two players in the following game:
Each of the players chooses an (integer) amount between $180 and $300.
Both players receive the lower amount.
Five dollars are transferred from the player who chose the larger amount to the player who chose the smaller one.
In the case that the same amount is chosen by both players, each receives that amount and no transfer is made.
Find the Nash equilibria for this game.
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China has begun to allow gradual changes in the RMB/dollar rate since 2005. There are still observers believed the RMB is undervalued. Which of the following statement is true holding other things constant?
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