I recently had an interesting card game for an interview.
The interviewer and I have two cards each, one with a '5' painted on it and one with a '10'. We pick a card each and show it at the same time. If we picked the same card, I receive nothing, while if we picked different cards, the interviewer pays me the number he picked in dollars. What is the interviewer most likely to do if he intends to minimise my payoff, and what should my strategy be to counter this?
Consideration 1: I pick '5' all the time, but if the interviewer knows I do this he would pick '5' as well so that I receive nothing and my expected payoff would just be zero.
Consideration 2: I assign a probability $p_1$ of picking a '5' (and $1-p_1$ of picking a '10'), and the interviewer assigns a probability $p_2$ of picking a '5' (and $1-p_2$ of picking a '10'). My payoff would then be
$$\mathbb{E}=10p_1(1-p_2)+5(1-p_1)p_2.$$
I was thinking of differentiation somehow, but $p_1$ aims to maximise $\mathbb{E}$ while $p_2$ aims to minimise $\mathbb{E}$. Is this even the correct strategy for both of us?
Consideration 3: A friend suggested assigning probabilities of $\frac13$ and $\frac23$ to the cards respectively for a Nash equilibrium since it is a symmetric game. Where does this come from intuitively? Do these probabilities match with the above equation?
Any help/comments on the considerations is greatly appreciated, cheers!