(See Problem 3

question 4

Multiple Choice

(See Problem 3.) 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 4 if the other player Swerves and a payoff of -36 if the other player also chooses to Drive Straight. This game has two pure strategy equilibria and

• A) a mixed strategy equilibrium in which one player swerves with probability 0.90 and the other swerves with probability 0.10.
• B) a mixed strategy in which each player swerves with probability 0.45 and drives straight with probability 0.55.
• C) a mixed strategy equilibrium in which each player swerves with probability 0.90 and drives straight with probability 0.10.
• D) two mixed strategies in which players alternate between swerving and driving straight.
• E) no mixed strategies.

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Definitions:

Interests In Land

Legal rights or claims a person may have in land, including ownership, rental, or usage rights.

Injunction

A legal order issued by a court requiring an individual or entity to do or cease doing a specific action.

Court Decree

A formal and authoritative order issued by a legal court, often finalizing a judgment.

Specific Performance

A legal remedy requiring a party to perform a specific act, usually in fulfillment of a contract.