You’re
standing at a bar. You’ve got a beer in
your left hand. So Topsie walks up and
says: “Hey Lefty, let’s play this game.”
Do you play? (Ignore the fact
that Topsie is a beautiful example of whatever you prefer to date.)
The
rules: “Topsie” and “Lefty” choose
whether to show heads or tails. After
they’ve simultaneously shown their coin the payoff occurs. The matrix below shows the payoffs. Plus means Lefty gets the payment.
Minus means Topsie gets paid. If both show heads Leftie gets
$3. If Topsie shows tails and Lefty
shows H, Topsie gets $2, etc.
|
Payoff
Matrix |
Topsie’s
choices |
||
|
H |
T |
||
|
Lefty’s
choices |
H |
+3 |
-2 |
|
T |
-2 |
+1 |
|
So, I ask,
has Topsie offered you a fair game? If you
play for a while would you expect to win, lose, or break even.