This is an example of the game of Chicken. Two teenagers in souped-up cars drive toward each

This is an example of the game of €œChicken.€ Two teenagers in souped-up cars drive toward each other at great speed. The first one to swerve out of the road is €œchicken.€ The best thing that can happen to you is that the other guy swerves and you don€™t. Then you are the hero and the other guy is the chicken. If you both swerve, you are both chickens. If neither swerves, you both end up in the hospital. A payoff matrix for a chicken-type game is the following.

(a) Does this game have a dominant strategy? _________ What are the two Nash equilibria in pure strategies? _____________________________
(b) Find a Nash equilibrium in mixed strategies for this game.

Transcribed Image Text:

Chicken Swerve Don't Swerve 1,2 0,0 Swerve Joe Bob Don't Swerve 2, 1