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# a selfles person approaches jones and smith with a \$100 bill and offers to sell it to the highest bidder, but both the winning and losing bidders...

a selfles person approaches jones and smith with a \$100 bill and offers to sell it to the highest bidder, but both the winning and losing bidders must pay her their bids. So if jones bids \$2 and smith bids \$1 they pay a total of \$3, but jones gets the money leaving him with a net gain of \$98 and smith with \$1. If both bid the same amount, the \$100 split evenly between them. Assume htat each of them has only \$1 bills on hand leaving three possible bids" \$0, \$1 or \$2. Write out the payoff matrix for this game, and then find its Nash equilibrium.

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