-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 by hunting 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 most likely focal-point equilibrium 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

The most likely focal-point equilibrium is {Bear, Bear} because both hunters prefer to share a bear over a raccoon, making it the outcome where both coordinate for the highest mutual satisfaction.

-Consider the Noncooperative, Static Game Depicted in Figure 3