Unformatted text preview: ( Matching Pennies ) Each of two people chooses either Head or Tail. If the choices differ, person 1 pays person 2 a dollar; if they are the same, person 2-pays person 1 a dollar. Each person cares only about the amount of money that he receives. A game that models this situation is shown in Figure 17.3. Such a game, in which the interests of the players are diametrically opposed, is called "strictly competitive". The game Matching Pennies has no Nash equilibrium. Figure 17.3 Matching Pennies (Example 17.1)....
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- Spring '10
- Game Theory, game Matching Pennies