17.4. Great Expectations 595
you guess
right?
Eric guesses
right?
no
yes
no
yes
1=2
1=2
1=2
1=2
1=2
1=2
yes 0
no 1
yes 1
no 0
yes 0
no 1
yes 1
no 0
yes
no
your
payoff
$0
$1
$1
$4
�$2
�$2
�$2
$10
probability
0
1=4
1=4
0
0
1=4
1=4
0
Nick guesses
right?
Figure 17.7 The revised tree diagram reflecting the scenario where Nick always
guesses the opposite of Eric.