Question
Consider the following variation of what biologists call the chicken game: Two drivers drive towards each other on a collision course They have to choose
Consider the following variation of what biologists call the chicken game:
Two drivers drive towards each other on a collision course
They have to choose whether to swerve or not
If they both swerve then each one of them will get a payoff of zero.
If no one swerves then both die which will give them a payoff of -100 (the value of their lives)
If one driver swerves and the other does not, the one who swerved will be called a "chicken," meaning a coward. The one who swerves will get a payoff of -1, while the one that drove straight will get a payoff of 1.
The matrix form of this game is given below.
SwerveStraightSwervea,bc,dStraighte,fg,h
What values do these payoffs take?
a=
b=
c=
d=
e=
f=
g=
h=
What are the Nash equilibria of this game?
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