17.4. Great Expectations 593
you guess
right?
Eric guesses
right?
no
yes
no
yes
1=2
1=2
1=2
1=2
1=2
1=2
yes 1=2
no 1=2
yes 1=2
no 1=2
yes 1=2
no 1=2
yes 1=2
no 1=2
yes
no
your
payoff
$0
$1
$1
$4
�$2
�$2
�$2
$0
probability
1=8
1=8
1=8
1=8
1=8
1=8
1=8
1=8
Nick guesses
right?
Figure 17.6 The tree diagram for the game where three players each wager $2
and then guess the outcome of a fair coin toss. The winners split the pot.