Question
Two street racers are playing a simultaneous game of chicken. They have to race towards each other and whoever swerves first is chicken and faces
Two street racers are playing a simultaneous game of chicken. They have to race towards each other and whoever swerves first is chicken and faces shame, a loss of 8, while the winner enjoys a gain of 3. If neither stop, they would crash into each other, a loss of 10. If both of them swerve at the same time, they are both chicken and face a loss of 5 each
If player B destroys his own brakes before the race, and player A sees that , what would the new Nash equilibrium be in this case?
a.Neither players stopb.Player B stops, Player A does notc.Both players stopd.Player A stops, Player B does not
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