Two players are engaged in a game of Chicken. There are two possible strategies, Swerve and Drive Straight. A player who chooses to Swerve gets a payoff of zero, regardless of what the other player does. A player who chooses to Drive Straight gets a payoff of 432 if the other player swerves and a payoff of –48 if the other player also chooses to Drive Straight. a. Represent the payoffs in the normal form. b. What is the pure strategy Nash equilibrium/equilibria? c. What is the probability of a player swerving or driving straight in the mixed strategy equilibrium d. From (c) what will be the expected payoff for the Nash equilibria?
a. Represent the payoffs in the normal form. Player 1\Player 2 | Swerve | Drive Straight Swerve | 0 | 0 Drive Straight | 432 | -48 b. The pure strategy Nash equilibrium is when both players choose some particular strategies, that are better for them, if there is no collusion between them. c. The probability of a player swerving is lower than the probability of driving straight in the mixed strategy equilibrium. d. From (c) the expected payoff for the Nash equilibria is that both players choose to drive straight.
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The experience was great for sure. The work was done by the deadline, so thank you! Only one thing though. If someone says that their work is due at 12pm and you have 3days, the ideal thing to do is to get it done earlier so that person can have enough time to look at it if they can.