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Econ 3M03  Introductory Game Theory
Test 1  Spring 2008
1.
The villainous Dr. Casanova Frankenstein is attempting to poison the heroic Captain
Amazing.
He has two hotdogs to offer Captain Amazing but only enough poison to
poison one of them.
He knows that Captain Amazing likes mustard but only has enough
mustard for one hotdog.
He chooses to poison one hotdog and to put mustard on a
hotdog.
(He can, but doesn't have to, poison the hotdog with mustard.)
Then he offers
the hotdogs to Captain Amazing.
Captain Amazing can eat either of the hotdogs, both of
them, or neither of them.
He knows that one of them is poisoned but he doesn't know
which one.
He can see which one of them has mustard on it.
Captain Amazing is very
hungry.
If he eats the hotdog with poison in it, he will die and get a payoff of 0.
If he
eats the hotdog with mustard and doesn't die (because it isn't poisoned) then he gets a
payoff of 5.
If he eats the hotdog without mustard and doesn't die (because it isn't
poisoned) then he gets a payoff of 3.
Dr. Casanova Frankenstein's payoff is 10 if Captain
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 Fall '08
 BRUCEJAMES
 Game Theory

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