Three Tokens and a Bluffing Rate
Ada and Bo play a stripped-down poker game. Three tokens marked , , and are shuffled; one is dealt face down to each player and the third is set aside unseen. Each player antes , so the pot is .
Only Ada acts. She may **check**, in which case the tokens are revealed and the higher one takes the pot; or she may **bet **, after which Bo either **folds** (Ada takes the pot) or **calls **, after which the tokens are revealed and the higher one takes the pot.
Both players know the rules and each other's strategies; neither can be exploited. Find the equilibrium: how often should Ada bet with the , and how often should Bo call with the ?
Answer
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