Suppose That in a Hawk-Dove Game Similar to the One

question 3

Multiple Choice

Suppose that in a Hawk-Dove game similar to the one discussed in your workbook, the payoff to each player is -6 if both play Hawk. If both play Dove, the payoff to each player is 4, and if one plays Hawk and the other plays Dove, the one that plays Hawk gets a payoff of 6 and the one that plays Dove gets 0. In equilibrium, we would expect hawks and doves to do equally well. This happens when the proportion of the total population that plays Hawk is

• A) .25.
• B) .63.
• C) .06.
• D) .13.
• E) 1.

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Definitions:

Excise Tax

A tax directly levied on certain goods, such as alcohol and tobacco, by a government entity.

Transactions

The process of exchanging goods, services, or financial instruments between parties.

Demand Curve

The demand curve is a graphical representation showing how the quantity demanded of a good or service varies with its price, typically sloping downward from left to right.

Excise Tax

A tax imposed on the sale of specific goods or services, such as alcohol, cigarettes, and gasoline.