Never Hold the High Number
At a quant off-site, three participants each pick a number in . Whoever picks the strictly largest number must pay each of the other two an amount equal to that person's own pick; the two lower pickers just collect. Priya picks first, publicly. Marco sees her number and picks second. The third pick comes from a random number generator, uniform on , as everyone knows. Priya and Marco are rational expected-profit maximizers. What number should Priya pick?
Answer
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