303 1 This is an example of the game of Chicken Two teenager

30.3 (1) This is an example of the game of \"Chicken.\" Two teenagers in soupedup cars drive toward each other at great speed. The first one to swerve out of the road is \"chicken.\" The best thing that can happen to you is that the other guy swerves and you don\'t. Then you are the hero and the other guy is the chicken. If you both swerve, you are both chickens. If neither swerves, you both end up in the hospital. A payoff matrix for a chickentype game is the following.

(a) Does this game have a dominant strategy? _________ What are the two Nash equilibria in pure strategies? _________

(b) Find a Nash equilibrium in mixed strategies in this game. _________

Solution

(a) Does this game have a dominant strategy? NO

What are the two Nash equilibria in pure strategies? The two outcomes where one teenager swerves and the does not.

(b) Find a Nash equilibrium in mixed strategies in this game. Play each strategy with probability 1/2