Choosing die sizes when the sum must stay under 8
Question
You and another player each independently choose a number of sides for your own die, whose faces are then , each equally likely. Both dice are rolled. If the two results add up to or less, each player is paid by a third party the value shown on their own die; if the total is or more, nobody is paid.
Both players choose optimally (an equilibrium). Let be the number of sides you choose and your expected payout. Find .
Short answer
. Compute the payoff table: against a -sided die, your payouts for are , , , so is a best reply to and is the symmetric equilibrium (smaller dice get undercut by a bigger one). Then , .
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