Managerial Economics & Business Strategy 8th Edition by Michael Baye,Jeff Prince

Exercise 24

In the following game, determine the maximum amount you would be willing to pay for the privilege of moving (a) first, (b) second, or (c) third: There are three players, you and two rivals. The player announcing the largest integer gets a payoff of $ 10, that announcing the second largest integer gets $0, and that announcing the third largest integer gets $5.