Please specify the terms you use (if necessary) and explain each step of your solutions.
In the game of Two-Finger Morra, 2 players show 1 or 2 fingers and simultaneously guess the number of fingers their opponent will show. If only one of the players guesses correctly, he wins an amount (in dollars) equal to the sum of the fingers shown by him and his opponent. If both players guess correctly or if neither guesses correctly, then no money is exchanged. Consider a specified player and denote by X the amount of money he wins in a single game of Two-Finger Morra.
(a) If each playesr acts independently of the other, and if each player makes his choice of the number of fingers he will hold up and the number he will guess that his opponent will hold up in such a way that each of the 4 possibilities is euqally likely, what are the possible values of X and what are their associated probabilities?
(b) Suppose that each player acts independently of the other. If each player decides to hold up the same number of fingers that he guesses his opponent will hold up, and if each player is equally likely to hold up 1 or 2 fingers, what are the possible values of X and their associated probabilities?© BrainMass Inc. brainmass.com October 16, 2018, 4:45 pm ad1c9bdddf
In this solution, the probabilities in question are found using basic principles of probability.
Game Theory: Economics & Business
The "Prisoner's Dilemma" was the gateway to the strategic viewpoint of game theory. In this assignment, you will explore the applications of game theory to economic business decisions.
Use the following information to ensure successful completion of the assignment:
1 Include two scholarly resources other than those in the assigned readings with appropriate references and in-text citations.
2 This assignment uses a grading rubric that can be viewed at the assignment's drop box. Instructors will be using the rubric to grade the assignment; therefore, students should review the rubric prior to beginning the assignment to become familiar with the assignment criteria and expectations for successful completion of the assignment.
3 Prepare this assignment according to the APA guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.
In a paper of 1,750-2,000 words, discuss how game theory is being applied to business decisions. Include the following:
1 A brief overview of game theory.
2 A description of the economic implications of game theory.
A description of how game theory is being applied in making business decisions.