Two individuals go out on a hunt. Each can individually choose to hunt a stag or hunt
Question:
Two individuals go out on a hunt. Each can individually choose to hunt a stag or hunt a hare. Each hunter must choose an action without knowing the choice of the other. The only way of hunting a stag is that both hunters choose to hunt it. An individual can always get a hare by himself, but a hare is worth less than a stag. To be precise, each hunter will get a payoff equal to two for successfully hunting a stag. A hunter will get a payoff equal to one for hunting a hare. Finally, a hunter will get a payoff equal to zero if she does not hunt anything.
(i) Identify the set of pure strategies for each player.
(ii) Write down the normal form game.
(iii) Compute the set of pure strategy Nash equilibria.
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws