Each of two players receives a ticket t on which there is a number in [0,1]. The number on a players ticket is the size of a prize that he may receive. The two prizes are identically and independently distributed according to a uniform distribution. Each player is asked independently and simultaneously whether he wants to exchange his price for the other players prize. If both players agree than the prizes are exchanges; otherwise each player receives his own prize.
I did it till best response of player 2 given player 1 is playing 'Exchange when T1<k' will be:
Don't exchange, if T2>k
Exchange if , T2<k
But it turns out to be T2<k/2 in second part. Why is it so?