Economic and Game Theory
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In class the following question occured: What does game theory predict in the following problem.
There are 9 players. They simultanously have to choose between option A or option B. The payoff of choosing B is fixed at 5. The payoff of choosing A depends of how many of the other players chose A as well:
The total number of players that choose A: 1 2 3 4 5 6 7 8 9
Profit for each player when choosing A: 0 1 2 3 4 5 6 7 8
This game is repeated with different payoffs for choosing B (2,3,4,6), but all decisions have to be made at once, i.e. no learning bias.
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