George and Sam have taken their fathers' cars out on a lonely road and are engaged in a game of Chicken.George has his father's Mercedes and Sam has his father's rattly little Yugoslavian-built subcompact car.Each of the players can choose either to Swerve or to Not Swerve.If both choose Swerve, both get a payoff of zero.If one chooses Swerve and the other chooses Not Swerve, the one who chooses Not Swerve gets a payoff of 10 and the one who chooses Swerve gets zero.If both choose Not Swerve, the damage to George's car is fairly minor and he gets a payoff of -5, while for Sam the results are disastrous and he gets a payoff of -100.
A) This game has a dominant strategy equilibrium in which George does not swerve and Sam swerves.
B) This game has two pure strategy Nash equilibria and no mixed strategy equilibrium.
C) This game has three different Nash equilibria, two of which are pure strategy equilibrium and one of which is a mixed strategy equilibrium in which George is more likely to swerve than Sam is.
D) The one and only Nash equilibrium in this game is where George does not swerve and Sam swerves.
E) This game has two pure strategy equilibria and a mixed strategy equilibrium in which Sam randomizes his strategy and George chooses Not Swerve with certainty.
Correct Answer:
Verified
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