Golden Balls Game: A Comparison with Prisoner's Dilemma, Study Guides, Projects, Research of Game Theory

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GOLDEN BALL

Golden Balls (A British gameshow)

Two contestants have to decide whether they're

going to "split" or "steal" a pot of money.

If they both opt to split, they split the money.

If one opts to split, and one opts to steal, the

one who steals it gets the whole pot.

If they both opt to steal it, then neither get the

money.

What are the differences between golden balls game and prison’s dilemma?

◦ Any dominant strategy?

◦ How many N.E.?

◦ Can Steve do better?

◦ Let’s watch another video:

https://www.youtube.com/watch?v=S0qjK3TWZE

◦ The game is very similar to the Prisoner’s Dilemma as we have studied in class. A key difference is that, in the standard Prisoner’s Dilemma, if one player chooses to defect (or steal), the other player is better off defecting instead of cooperating (splitting). ◦ However, in Golden Balls, as long as one player chooses to steal, neither player has a better strategy. That is to say, all three strategies that involve stealing are Nash equilibria and (Split, Split) is an unstable strategy. https://blogs.cornell.edu/info2040/2012/09/21/split-or- steal-an-analysis-using-game-theory/