Dom’s Game Dom Mazzone EMBA CL 2007

Dom’s Game How the Game is played Coin on top of desk has been tossed before class and is covered. It is unknown whether the coin is showing “Heads” or showing “Tails” You selects “Heads” or “Tails” and if you are correct you wins $20 (from Dom) Questions - Write your answer in your notes Question 1 – Would you be willing to give Dom $1 to play this game? Question 2 – What is the maximum you would be willing to pay Dom to play this game?

Dom’s Game Bidding to play The whole class bids to see who will play Dom’s Game. Everyone in class bids via a sealed bid Write Name and Amount Bid on sheet of paper to be turned in Minimum bid is $.50 and bids can only be in $0.50 increments There is only one winner (otherwise Dom risks a lot of money!) The winner is determined by the highest bid. In the event of a tie for the highest bid then the winner is chosen by lottery among those with the highest bid. Person who wins bid pays Dom the amount of the bid and then gets to play Dom’s game. (Choose heads or tails and if correct wins $20 from Dom. If incorrect Dom keeps $20.) Let the bidding begin ….

Dom’s Game: Questions/observations to consider What were the bids that students made? Maximum Minimum Averages Mean Median Mode What affects the maximum amount you are willing to bid in order to play this game?

Howard’s Game Howard is going to offer a $20 bill up for sale through a standard open auction process. (Players bid against one another announcing their bids openly. Bids are not sealed). The highest bidder wins the $20. Note that I am more generous than Dom since I will DEFINITELY give the $20 away whereas Dom is giving it away only half of the time. Both the highest and 2 nd highest players must give Howard the amount of their last bids! My generosity is offset by my greed at collecting the top 2 bids) Let the bidding begin…