Question: QUESTION 3 Consider the below payoff matrix for a game of chicken. Two players drive their cars down the center of the road directly at
QUESTION
Consider the below payoff matrix for a game of chicken. Two players drive their cars down the center of the road directly at each other. Each player chooses SWERVE or STAY. Staying wins you more payoff only if the other player swerves. Swerving loses face if the other player stays. However, the worst outcome is when both players stay.
Player chooses rows and Player chooses columns. Denote the probability of "Stay" for Player as p and for Player as q
What is the value of q so that Player is indifferent between Stay and Swerve?
Write your answer as a decimal number with decimal places eg
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