Rock paper scissors against a player who never throws rock
Question
You play repeated rounds of rock-paper-scissors against someone who is not allowed to play rock. A win pays you $1, a loss costs you $1, and a tie pays nothing. If both sides play optimally, what is your expected gain per round?
Short answer
dollar. Paper is dominated for you, so mix rock (prob. ) and scissors; the opponent mixes paper (prob. ) and scissors. Your payoff is . Choosing makes it whatever is, and the opponent's caps it at , so the game's value is .
Adapted from QuantQuestions.io; question and answer rewritten by SelfMadeQuant.com.
See the hint and the full worked solution in the question bank (free account).
Open the worked solutionLessons behind this question
Start with a free lesson: Expectation, Variance and Covariance is part of a free topic. Create a free account, no card needed, to read it in full with worked solutions.
Read it free