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GAME Adding Numbers—Lose If Go to 100 or Over (Win at 99) In the second ver- sion, two players again take turns choosing a number be- tween 1 and 10 (inclusive), and a cumulative total of their choices is kept. This time, the player who causes the total to equal or exceed 100 is the loser.The first pair starts by choosing numbers more or less at random, until the total drifts into the 90s and the player with the next turn clinches a win by taking the total to 99. The second (or maybe third) time you play, when the total gets somewhere in the 80s, one of that pair will realize that she wins if she takes the total to 88. When she does that, the other will (probably) realize that she has lost, and as she concedes, the rest of the class will realize it, too. The next pair will quickly settle into subgame-perfect play as in the first version. Eventually everyone will have figured out that starting at 0 (being the first mover) guarantees not a win but a loss. In this version of the game, it is better to go second: let the first player choose any number and then say 11 minus what the other says. Here, the second player takes the total succes- sively to 11, 22, . . ., 77, 88, 99; the first player must then take the total to 100 (or more) and lose. You can hold a brief discussion comparing the two versions of the game; this helps make the point about order advantages in different games.
1. Two firms, producing an identical good, engage in price competition. The cost functions are c 1 (y 1 ) = 1:17y 1 and c 2 (y 2 ) = 1:19y 2 , correspondingly. The demand functi
GAME PLAYING IN CLASS There are several games that are appropriate for use on the first or second day of class. These games are simple but can be used to convey important poin
Scenario As described by William Poundstone, imagine that you just notice that electricity has gone out for your entire neighborhood. the electrical company can send somebody to
please compute this number 885 for the swertres lotto game.
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On a picnic outing, 2 two-person teams are playing hide-and-seek. There are four hiding locations (A, B, C, and D), and the two members of the hiding team can hide separately in a
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Consider two quantity-setting firms that produce a homogeneous good. The inverse demand function for the good is p = A - (q 1 +q 2 ). Both firms have a cost function C = q 2 (a
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