Table 12.3
Payoffs to Villager 1 and Villager 2 in a Road Maintenance Game
(R is the benefits of a maintained road and the project requires a total of L hours of labor,therefore R-L/2>0 is the net utility payoff)

-According to table 12.3,what is the Nash equilibrium if this game is non-cooperative?

Question

Quizplus · Accepted Answer

In a non-cooperative game, a Nash equilibrium occurs when each player's strategy is optimal, given the other player's strategy. Choice A represents a situation where neither villager has an incentive to change their strategy (shirking) unilaterally, assuming the other's strategy remains unchanged, which typically characterizes a Nash equilibrium in non-cooperative settings.

Table 12.3 Payoffs to Villager 1 and Villager 2 in a Road