Solution

ID: past-exam-of-the-computer-science-course-of-the-university-of-oxford/2020/computational-game-theory/1/a/solution

Use a simultaneous two-player normal-form game, with X choosing the row and Y the column. Each player's pure strategies are and ; a payoff pair lists X first. Measure every dataset size in millions and use the stated normalization . The source's reference to a shared half as “points” is interpreted in the same million-point units as the corpus, so the shared addition is to each initial dataset.
The bimatrix game has payoffs
For example, joint purchase gives dataset sizes and , total , and each buyer pays . A sole buyer gets the full corpus and pays . The total payoff is whenever a purchase occurs and when neither buys: the game is not a zero-sum game, even though gross market shares always sum to one.
For the following calculations, set
The payoff differences “buy minus do not buy,” with the other player's action held fixed, are
These four differences give all the best response comparisons without mixing up row and column payoffs.

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