(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:

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The practice of researching products online before buying them in a physical store, contrasting with showrooming.

Examining Products

The comprehensive analysis and evaluation of a product's design, features, quality, and market positioning to assess its competitiveness and potential for success.

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The practice of interacting with customers using a combination of indirect and direct communication channels – websites, retail stores, mail order catalogs, direct mail, email, mobile, etc.

Communication Channels

The mediums through which information and messages are transmitted from one entity to another, including verbal, written, and digital forms.