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.What is (are)the Nash equilibrium (equilibria)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.What is (are)the Nash equilibrium (equilibria)in this Chicken game?

Quizplus · Accepted Answer

Both b and c are Nash equilibria because in both cases, neither player has an incentive to deviate from their strategy if the other player sticks to their strategy. In option b, if Paul drives straight, John turning would result in a crash and a larger negative payoff for both players. Similarly, in option c, if John drives straight, Paul turning would result in a crash and a larger negative payoff for both players. Therefore, both b and c are Nash equilibria.