What are the equilibrium payoffs

Reference no: EM13181602

Consider the following game: There are 5 pirates on a boat, conveniently named P1, P2 P3, P4 and P5. These 5 pirates have just dug up a long lost treasure of 100 gold pieces. They now need to split the gold amongst themselves, and they agree to do it in the following way:
Pirate P1 will suggest a distribution of the coins. All 5 pirates will vote on his proposal. If an absolute majority approve the plan, then they proceed according to the plan. If he fails to pass his proposal by an absolute majority, then P1 must walk the plank, and it becomes P2's turn to propose a distribution of the coins among the remaining 4 pirates. They continue this way until either a) a plan has been approved, or b) only P5 is still alive (in which case he keeps the whole treasure).
We'd like to know what happens with the treasure. Before we consider the outcome, there are a few important things we must know about pirates:
• Pirates are very smart. They always think ahead.
• Above all else, a pirate must look out for his own life. No pirate wants to walk the plank.
• After life itself, there is nothing a pirate values more than gold.
• All else being equal, pirates enjoy watching other pirates die.
Find equilibrium (or equilibria) using rollback. What are the equilibrium payoffs?

Reference no: EM13181602

Questions Cloud

Use the irr method to select the best jogging track : Four mutually exclusive projects are being considered for a new two-mile jogging track. The life of the track is expected to be 80 years, and the sponsoring agency's MARR is 12 percent per year. Annual benefits to the public have been estimated by..

What are the dimensions of this rectangle : What are the dimensions of this rectangle?

Factors related to examine that can affect assessmet process : What are the factors related to the examinee that can affect the assessment process. (e.g., motivation, previous test experience, health and emotional status, etc...)

Find the fourier series for the odd extention of function : Find the Fourier series for the odd extention of the function

What are the equilibrium payoffs : Consider the following game: There are 5 pirates on a boat, conveniently named P1, P2 P3, P4 and P5. These 5 pirates have just dug up a long lost treasure of 100 gold pieces. They now need to split the gold amongst themselves, and they agree to do..

Calculate karen total annual premium : Because the car has an airbag, an alarm, and antilock brakes, the insurance company has assigned a rating factor of.95 to the policy. As her auto insurance agent, calculate Karen's total annual premium.

How are a, ln, and rn related : Let A be the area under the graph of an increasing continuous function f from a to b, and let Ln and Rn be the approximations to A with n subintervals using left and right endpoints, respectively.

How many are taking calculus but not algebra : At East Zone University there are 627 students taking College Algebra or Calculus. 417 are taking College Algebra, 261 are taking Calculus,and 51 are taking both College Algebra and Calculus. How many are taking Calculus but not Algebra?

Is the measure stabilizing or destabilizing : Some states are required to balance their budgets. Is this measure stabilizing or destabilizing? Suppose all states were committed to a balanced budget philosophy and the economy moved into a recession. What effects would this philosophy have on t..

User Account

All Pages