Bugs Bunny and Daffy Duck are contestants on a game show called Split or Steal.
ID: 3320261 • Letter: B
Question
Bugs Bunny and Daffy Duck are contestants on a game show called Split or Steal. On the show, Bugs and Daffy have to pick one of two cards and decide to split the prize money of $100,000 or steal it from the other contestant. The decisions are made simultaneously so neither player knows what the other will do. The table below represents the result of the contestants’ choices.
Daffy
Split
Steal
Bugs
Split
50k
50k
0
100k
Steal
100k
0
0
0
What should a rational player do in this game? Explain.
Is this a zero sum game? Explain.
Daffy
Split
Steal
Bugs
Split
50k
50k
0
100k
Steal
100k
0
0
0
Explanation / Answer
Solution
(a) a rational player is playing his best strategy given the strategy choices of all other players so here ,a ratrional player will choose (split, split) i.e. (50k,50k)
(b) Zero-sum is a situation in game theory in which one person’s gain is equivalent to another’s loss, so the net change in wealth or benefit is zero
No this is not a zero sum game as net payoff is not equal to 0.
i.e. 0+100 is not equal to 0
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