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The following payoff matrix describes the strategic situation faced by two rowdy teens, Ace and Vince, who are driving cars towards each other in a
The following payoff matrix describes the strategic situation faced by two rowdy teens, Ace and Vince, who are driving cars towards each other in a (simultaneous move) game of "Chicken". If both swerve at the last second, they avoid a collision. If only one swerves, they again avoid a collision and, in addition, the one who swerves (does not swerve) receives a psychological loss (gain) from being "wimpy" ("tough"). If neither swerves, they each suffer a large loss from the resulting collision. Vince Swerve Don't Swerve Ace Swerve (0, 0) (1, 1) Don't Swerve (1, 1) (50, 50) a. Find the two pure strategy Nash equilibria of this game
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