Question: I need proper written solution to this. It should be correct PLEASE. If you are not sure pls dont attempt. Problem 6: Jeff and Dale
I need proper written solution to this. It should be correct PLEASE. If you are not sure pls dont attempt.

Problem 6: Jeff and Dale are playing a game of "chicken" on the track at Daytona. They drive toward each other at high speed, and the instant before they hit, each must choose from two possible strategies. The first is to swerve out of the way, which guarantees safety but is embarrassing to the person who "chickens out". The second is to stay the course and risk a serious crash. The simultaneous move game in normal form is: Jeff Stay Swerve Stay -5 , -5 3, -1 Dale Swerve -1 , 3 0 , 0 a) Find the pure strategy Nash Equilibria, if any. Dale has just purchased the new generation Tesla. His new car comes with a programmable autopilot, which he can program ahead of time to Stay or Swerve (he won't have time to change it at the last minute). Dale announces his choice to Jeff, who believes him ( Dale may drive like a madman, but he never lies). As a result, this is now a sequential move game, with Dale moving first. b) Write out the extensive form of this game and solve by backward induction. Is this a game with first- or last-mover advantage? c) Write out the sequential game in normal form (cf. Notes 20, slide 4). Identify a Nash Equilibrium which is not subgame perfect. d) Go back to the simultaneous move game from part a). Find a Nash Equilibrium in mixed strategies. Why is this equilibrium 'symmetric across the two players
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
