-Consider the game depicted in Figure 14.3, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. The Nash equilibrium strategy profile for this game is:
A) {Diligent, Diligent}.
B) {Diligent, Negligent}.
C) {Negligent, Diligent}.
D) {Negligent, Negligent}.
E) Answers b and c are correct.

Question

-Consider the game depicted in Figure 14.3, which summarizes the payoffs to a tortfeasor and an injured person resulting from an act of negligence. The Nash equilibrium strategy profile for this game is:
A) {Diligent, Diligent}. 
B) {Diligent, Negligent}. 
C) {Negligent, Diligent}. 
D) {Negligent, Negligent}. 
E) Answers b and c are correct.

Quizplus · Accepted Answer

In a Nash equilibrium, each player's strategy is optimal given the other player's strategy. In the {Negligent, Negligent} profile, neither player can improve their payoff by unilaterally changing their strategy.

-Consider the Game Depicted in Figure 14