Table 1213 The payoffs represent dollars If both players fol

(Table 12.13) The payoffs represent dollars.

If both players follow their maximin strategy, the outcome of this game is:

Solution

Correct option is (0, 0).

In a maximin strategy, every player finds the minimum payoff at each strategy, and then chooses the one that maximizes the minimum payoff. Player 1 observes that when player 2 stay straight, its payoff is minimum when it selects to stay straight. Similarly when  player 2 swerve, player 1\'s payoff is minimum when it selects to swerve, Since out of these two, (-500 vs 0), it chooses to swerve. Similarly, player 2 chooses to maximize the minimum payoff which is to swerve. The maximin strategy results in an outcome of (0 , 0).