Economic Analysis of Social Issues 1st Edition by Alan Grant

Exercise 27

George and Jerry are playing Odds or Evens but with a unique set of rules. George suggests, "Jerry, if we both shoot one finger, 111 give you 3 points. If we both shoot two fingers, 111 give you 1 point. But if one of us shoots one finger and the other shoots two, you give me 2 points. After a dozen rounds, the one with the most points wins." Construct a payoff matrix that illustrates this game. Then compute George's and Jerry's ideal strategies.