-Consider the static oil-drilling game depicted in Figure 16.2. The payoffs to both players from Nash equilibrium strategy profile for this game are:
A) (52, 52).
B) (12, 70)
C) (70, 12)
D) (24, 24)
E) Cannot be determined without additional information about the players' positions in the game tree.

Question

-Consider the static oil-drilling game depicted in Figure 16.2. The payoffs to both players from Nash equilibrium strategy profile for this game are:
A) (52, 52). 
B) (12, 70) 
C) (70, 12) 
D) (24, 24) 
E) Cannot be determined without additional information about the players' positions in the game tree.

Quizplus · Accepted Answer

In a static game, players choose strategies simultaneously. The Nash equilibrium is where neither player can benefit by unilaterally changing their strategy. The payoff (24, 24) suggests mutual best responses.

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