Teen 1 Question Two (25 marks) The game of chicken is played by two macho teens...

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Teen 1 Question Two (25 marks) The game of chicken is played by two macho teens who speed toward each other on a single-lane road. The first to veer-off is branded the chicken, whereas the one who does not veer gains peer-group esteem. If neither of them veers both die in the resulting crash. Payoffs of the game are provided in the following table. Teen 2 Does Veer not veer Veer 2,2 1,3 Does not veer 3,1 0,0 a) Find the pure-strategy Nash equilibrium or equilibria. (10 marks) b) Compute the mixed-strategy Nash equilibrium. (8 marks) c) What is the dominant Nash equilibrium strategy for the repeated prisoner's dilemma game when both players know that the game will end after one million repetitions? Give a reason for your answer. (7 marks) Teen 1 Question Two (25 marks) The game of chicken is played by two macho teens who speed toward each other on a single-lane road. The first to veer-off is branded the chicken, whereas the one who does not veer gains peer-group esteem. If neither of them veers both die in the resulting crash. Payoffs of the game are provided in the following table. Teen 2 Does Veer not veer Veer 2,2 1,3 Does not veer 3,1 0,0 a) Find the pure-strategy Nash equilibrium or equilibria. (10 marks) b) Compute the mixed-strategy Nash equilibrium. (8 marks) c) What is the dominant Nash equilibrium strategy for the repeated prisoner's dilemma game when both players know that the game will end after one million repetitions? Give a reason for your answer. (7 marks)