01exam - Prof. William H. Sandholm Department of Economics...

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–1– Prof. William H. Sandholm Department of Economics University of Wisconsin March 8, 2001 Midterm Exam – Economics 713 1. (10 points) Consider the extensive form game pictured below. In this game, is it more appropriate to represent player 1's behavior using a mixed strategy or a behavior strategy, or is either approach equally appropriate? Explain. 2. (25 points) A newspaper runs the following contest: Each participant mails in a postcard on which he writes an integer between 0 and 1000 (inclusive). Given the entries, the target integer is defined to be 9 10 times the highest entry, rounding downward if the result is not an integer. All participants who chose the target integer split a $500 prize. Suppose this contest is modeled as a simultaneous move game among 100 players. Using a solution concept developed in this course, determine a unique prediction of play. State the weakest possible assumptions about the players' knowledge and abilities which would justify your prediction.
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This note was uploaded on 08/08/2008 for the course ECON 713 taught by Professor Sandholm during the Spring '08 term at Wisconsin.

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01exam - Prof. William H. Sandholm Department of Economics...

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