-Consider the oil-drilling game depicted in Figure 4.2 in which the payoffs are in millions of dollars. If this game is played just once, the Nash equilibrium strategy profile is:
A) {Narrow, Narrow}.
B) {Narrow, Wide}.
C) {Wide, Narrow}.
D) {Wide, Wide}.
E) Both a and d are correct.

Question

-Consider the oil-drilling game depicted in Figure 4.2 in which the payoffs are in millions of dollars. If this game is played just once, the Nash equilibrium strategy profile is:
A) {Narrow, Narrow}. 
B) {Narrow, Wide}. 
C) {Wide, Narrow}. 
D) {Wide, Wide}. 
E) Both a and d are correct.

Quizplus · Accepted Answer

In a one-shot game, each player chooses their best response to the other player's strategy. "Wide, Wide" is the Nash equilibrium where neither player can benefit by unilaterally changing their strategy.

-Consider the Oil-Drilling Game Depicted in Figure 4