Traveler's Dilemma
An airline loses two travelers' identical antiques. Each independently claims an integer value from $2 to $100. Both are paid the lower claim; additionally, the lower claimant gets a $2 bonus and the higher claimant pays a $2 penalty. How many dollars do rational players claim in the unique Nash equilibrium?
Related problems & prerequisites
Worth solving first
- The Rational Ultimatum 6.0/10
- Matching Pennies 6.0/10
- Grim Trigger 5.0/10
Source: Introduced by Kaushik Basu (1994). Statement written for AxiomIQ.