Use the following case from question
Two street racers are playing a simultaneous game of chicken.They have to race towards each other and whoever swerves first is chicken and faces shame,a loss of 8,while the winner enjoys a gain of 3.If neither stop,they would crash into each other,a loss of 10.If both of them swerve at the same time,they are both chicken and face a loss of 5 each
-What would the Nash equilibrium be in this game?
A)Neither of the players would stop
B)Both of the players would stop
C)Player A stops
D)Player B stops

Question

​Use the following case from question
Two street racers are playing a simultaneous game of chicken.They have to race towards each other and whoever swerves first is chicken and faces shame,a loss of 8,while the winner enjoys a gain of 3.If neither stop,they would crash into each other,a loss of 10.If both of them swerve at the same time,they are both chicken and face a loss of 5 each
-​What would the Nash equilibrium be in this game?
A)​Neither of the players would stop
B)Both of the players would stop
C)Player A stops
D)​Player B stops

Quizplus · Accepted Answer

In a Nash equilibrium, each player's strategy is optimal given the other player's strategy. If both players swerve, they each face a loss of 5, which is preferable to the loss of 10 they would face if neither swerved. This outcome is stable because neither player has an incentive to unilaterally change their strategy; swerving would result in a greater loss.

​Use the Following Case from Question

Use the Following Case from Question