The Traveler's Dilemma
May 30, 2007 8:56 AM Subscribe
"He asks each of them to write down...any dollar integer between 2 and 100 without conferring together. If both write the same number...he will pay each of them that amount. But if they write different numbers, he will ... pay both of them the lower number along with a bonus and a penalty--the person who wrote the lower number will get $2 more...and the one who wrote the higher number will get $2 less.... For instance, if Lucy writes 46 and Pete writes 100, Lucy will get $48 and Pete will get $44."What amount would you choose? And what does your answer tell us about the limits of Game Theory?
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