Anyone see survivor last night? When asked to pick a number between 1
and 1000 (presumably the closest number to the one in the questioner's
head would win her vote) the first contestant chose 3 and the second
chose 886! Incredibly poor strategy on both contestants part especially
when a million dollars was at stake.
(For students and others on the list wondering what the correct
strategy is note that this game is the same as the median voter theorem
or Hotelling's two firm location problem. If the first person chose 3
the second person should have chosen 4 thereby winning if the number was
4 or more. Thus, what should the first person have chosen?)
Alex
--
Dr. Alexander Tabarrok
Vice President and Director of Research
The Independent Institute
100 Swan Way
Oakland, CA, 94621-1428
Tel. 510-632-1366, FAX: 510-568-6040
Email: [EMAIL PROTECTED]
