-Consider the noncooperative, static game depicted in Figure 3.1. Two hunters are stalking bear or raccoon. Each could hunt raccoon alone, or they can coordinate their efforts and hunt bear. Sharing a bear is preferred to sharing a raccoon. The payoffs in this game are measured in units of satisfaction. If larger payoffs are preferred, the Nash equilibrium strategy profile for this game is:
I. {Bear, Bear}.
II. {Raccoon, Raccoon}.
III. {Bear, Raccoon}.
IV. {Raccoon, Bear}.
Which of the following is correct?

Question

Quizplus · Accepted Answer

A Nash equilibrium occurs when no player can benefit by changing their strategy while the other players keep theirs unchanged. In this scenario, both {Bear, Bear} and {Raccoon, Raccoon} are Nash equilibria. In {Bear, Bear}, neither hunter would want to switch to hunting raccoon alone because they would get a lower payoff. Similarly, in {Raccoon, Raccoon}, neither would switch to bear because they would not be able to catch it alone, assuming the other sticks to raccoon, leading to a lower payoff. Thus, both I and II are correct.

-Consider the Noncooperative, Static Game Depicted in Figure 3