-Consider the static oil-drilling game depicted in Figure 16.2. The Nash equilibrium strategy profile for this game is:
A) {Narrow, Narrow}
B) {Narrow 6 Narrow}
C) {Wide, Wide}
D) {Wide 6 Wide}
E) None of the above.

Question

-Consider the static oil-drilling game depicted in Figure 16.2. The Nash equilibrium strategy profile for this game is:
A) {Narrow, Narrow} 
B) {Narrow 6 Narrow} 
C) {Wide, Wide} 
D) {Wide 6 Wide} 
E) None of the above.

Quizplus · Accepted Answer

In a static oil-drilling game, the Nash equilibrium occurs when both players choose strategies that are best responses to each other. If both players choose "Wide," neither can benefit by unilaterally changing their strategy, making {Wide, Wide} the Nash equilibrium.

-Consider the Static Oil-Drilling Game Depicted in Figure 16