Two players are engaged in a game of Chicken. There are two possible strategies,

Question

Two players are engaged in a game of Chicken. There are two possible strategies, Swerve and Drive Straight. A player who chooses to Swerve is called Chicken and gets a payoff of zero, regardless of what the other player does. A player who chooses to Drive Straight gets a payoff of 32 if the other player swerves and a payoff of 48 if the other player also chooses to Drive Straight. This game has two pure strategy equilibria and- a. a mixed strategy equilibrium in which each player swerves with probability 60 and drives straight with probability 40. b. two mixed strategies in which players alternate between swerving and driving straight.. c.. a mixed strategy equilibrium in which one player swerves with probability.60 and the other swerves with probability 40. d. a mixed strategy in which each player swerves with probability 30 and drives straight with probability .70. . e.. no mixed strategies..

Explanation / Answer

Solution: a mixed strategy equilibrium in which each player swerves with probability 0.30 and drives straight with probability 0.70

Explanation: It will be opting a mixed strategy equilibrium in which each player swerves with probability 0.30 and drives straight with probability 0.70; as the profile induces a probability distribution or lottery over the possible out- comes of the game

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