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1. Two cars are meeting at an intersection and want to proceed as indicated by the arrows in the following Figure: Each Driver can

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1. Two cars are meeting at an intersection and want to proceed as indicated by the arrows in the following Figure: Each Driver can proceed or move. If both proceed, there is an accident. A would have a payoff of 100in this case, and B a payoff of 1.000 (since B would be made responsible for the accident, since A has the right of way). If one yields and the other proceeds, the one yielding has a payoff of 5, and the other one of 5. If both yield, it takes a little longer until they can proceed, so both have a payoff of 10. Analyze this simultaneous game, draw the payoff bimatrix, and find the Nash equilibrium.

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