Jump to content
BrainDen.com - Brain Teasers
  • 0

Who wants a dollar pt. 2


Suppose you and a logical but competitive friend are at a $1 auction.  The auction works as such, you each start the contest with $3 and you bid on $1 bills.  The highest bid for each round wins $1 minus the amount bid AND loses their actual bid.  So for example, if in round 1, you bid $.20 and win the $1 then your new balance would be $3 - 0.20 + (1-0.20) = 3.60.  If a tie occurs, the amount gained for each individual (i.e. 1 - bid) is divided by 2 but the full bid is still subtracted from the totals. Lastly $0 bets are not allowed.  If you are out bid then you lose your bet. 

Knowing that your friend is competitive and logical...

how much should you bid?

what would be your expected payout after five rounds?

Edited by BMAD
Link to post
Share on other sites

0 answers to this question

Recommended Posts

There have been no answers to this question yet

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Answer this question...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Recently Browsing   0 members

    No registered users viewing this page.

  • Create New...