Table 17-19.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 17-19.How many Nash equilibria are there in this Chicken game?

Question

Table 17-19.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 17-19.How many Nash equilibria are there in this Chicken game?

Quizplus · Accepted Answer

There are two Nash equilibria in this game: (2,2) and (-1,-1). In both equilibria, neither player has an incentive to deviate from their strategy given the other player's choice. Therefore, the best choice is to either cooperate and turn or to bravely drive straight depending on personal preference.