This week’s Classic also comes from Ben Orlin, although it’s relatively mediocre compared to the Express.
In the three-player Game of Mediocrity, you win by not winning too much.
Each round, every player secretly picks a number from 0 to 10. The numbers are simultaneously revealed, and the median number wins that number of points. (If two or more players pick the same number, then the winner is randomly selected from among them.)
After five rounds, the winner is whoever has the median number of points. (Again, if two or more players have the same score, then the winner is randomly selected from among them.)
With one round remaining, players A, B and C have 6, 8 and 10 points, respectively. Player A sighs and writes down “3,” but fails to do so in secret. Players B and C both see player A’s number (and both see that the other saw A’s number), and will take care to write their own numbers in secret. Assuming everyone plays to win, what numbers should B and C choose?
Players B and C have 11 strategies each. This yields 121 outcomes. The following table details the winnings to each player in the 5th round for each of the 121 outcomes. Scores are denoted in the form (A, B, C). Two or more nonzero numbers in the same triple means that random selection will determine the 5th round winner from the tie.
After adding the 5th round score, the Most Mediocre player in each outcome is shown below. Two or more winners for an outcome means that random selection will determine the Most Mediocre from the tie.
Using Higher Order Dominance, B and C will successively eliminate inferior strategies, and consider what is inferior and eliminated for the other. The following happens.
The optimum strategy is for B and C to both choose 10, and half the time be the Most Mediocre.
This outcome is a Nash Equilibrium, as neither player can gain by deviating.