Two Players Are Engaged in a Game of Chicken

question 19

Multiple Choice

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.

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Definitions:

Healthy Habits

Practices or behaviors that are conducive to maintaining or improving one's physical and mental health.

Corporate Reputation

The collective perceptions and evaluations of a company's actions and its ability to meet stakeholders' expectations over time.

Workforce Diversity

Refers to a diverse set of employees in an organization, including differences in race, ethnicity, gender, age, religion, ability, and sexual orientation.

Flexibility

The ability to adapt to changes, shift strategies or approaches, and handle unexpected challenges effectively.