Table 16-18
The Chicken Game is named for a contest in which drivers test their courage by driving straight at each other. John and Paul have a common interest to avoid crashing into each other, but they also have a personal, competing interest to not turn first to demonstrate their courage to those observing the contest. The payoff table for this situation is provided below. The payoffs are shown as (John, Paul).

-Refer to Table 16-18.How many Nash equilibria are there in this Chicken game?

Question

Table 16-18
The Chicken Game is named for a contest in which drivers test their courage by driving straight at each other. John and Paul have a common interest to avoid crashing into each other, but they also have a personal, competing interest to not turn first to demonstrate their courage to those observing the contest. The payoff table for this situation is provided below. The payoffs are shown as (John, Paul).
 
-Refer to Table 16-18.How many Nash equilibria are there in this Chicken game?

Quizplus · Accepted Answer

There are two Nash equilibria in this game, which occur when both players choose either (Swerve, Swerve) or (Fight, Fight). Both of these outcomes are stable because if one player were to deviate and choose the opposite action, they would be worse off than if they had stayed with their original choice. Therefore, the best choice for both players is to swerve and avoid a potentially dangerous collision.

Table 16-18 The Chicken Game Is Named for a Contest in Which