Re: Heads Up Game Theory exercise
I will show that there is not a better strategy than the one I mentioned . Again , you can make the assumption that your grandmother gave you 50 cents as a gift so it's not coming from your pockets .
Instead of choosing numbers from 1-100 , lets pick a random number from the interval [0,1]. Note that the two questions are the same when n approaches infinity . In the example , I've used , n=100 .
Let a be your optimal pushing range ; a>=0
Let x be your opponent's optimal calling range . 1/3<=x<=1
We can write a in terms of x . Notice that (1-x)/(x-a) = 2
x=(2a+1)/3
The probability that your opponent wins given that he calls is (x-a) + (1-x)/2 ; x-(3x-1)/2 + (1-x)/2 = 1-x
EV(x): (3x-1)/2*[1.5x + 3.5*x -2.5*(1-x)]
We wish to maximize this function using derivatives . Ughhh
EV(x) = 1/2 *[22.5x^2 -15x +2.5] after simplifying
EV'(x) = 1/2*[45x -15] =0
22.5x = 7.5
x=1/3
Woohoo !!
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