(Optional) Recall the game from Exercise S11 in Chapter 4, where Larry, Moe, and Curly can choose to

(Optional) Recall the game from Exercise S11 in Chapter
4, where Larry, Moe, and Curly can choose to buy tickets toward a prize worth
$30. We found six pure-strategy Nash equilibria in that game. In this problem,
you will find a symmetric equilibrium in mixed strategies.

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(Optional) Recall the game from Exercise S11 in Chapter 4, where Larry, Moe, and Curly can choose to
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(a) Eliminate the weakly dominated strategy for each
player. Explain why a player would never use this weakly dominated strategy in
his equilibrium mixture.

(b) Find the equilibrium in mixed strategies.

 

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