Asked by
Jadon Rodriguez
on Oct 14, 2024
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Two players are engaged in a game of "chicken." There are two possible strategies, Swerve and Drive Straight.A player who chooses to Swerve is called "chicken" and gets a payoff of zero, regardless of what the other player does.A player who chooses to Drive Straight gets a payoff of 84 if the other player Swerves and a payoff of 36 if the other player also chooses to Drive Straight.This game has two pure strategy equilibria and
A) a mixed strategy equilibrium in which each player swerves with probability 0.30 and drives straight with probability 0.70.
B) two mixed strategies in which players alternate between swerving and driving straight.
C) a mixed strategy equilibrium in which one player swerves with probability 0.30 and the other swerves with probability 0.70.
D) a mixed strategy in which each player swerves with probability 0.15 and drives straight with probability 0.85.
E) no mixed strategies.
Chicken
A domesticated bird commonly raised for its meat and eggs, and sometimes used as a symbol in games of bravery or conflict.
Payoff
Payoff refers to the return or reward received as a result of a particular action or decision, often used in the context of games and economic strategies.
Pure Strategy Equilibria
A solution concept in game theory where players choose a single strategy that maximizes their payoff given the strategies chosen by the other players.
- Enhance understanding of the concept of Nash equilibrium within numerous strategic settings.
- Exercise mixed strategy equilibria within game theory analytical contexts.
- Discern between pure strategies and mixed strategies in the analytical structure of game theory models.
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Learning Objectives
- Enhance understanding of the concept of Nash equilibrium within numerous strategic settings.
- Exercise mixed strategy equilibria within game theory analytical contexts.
- Discern between pure strategies and mixed strategies in the analytical structure of game theory models.