Two Players Are Engaged in a Game of Chicken

question 8

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 432 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 .10 and drives straight with probability .90.
• B)a mixed strategy in which each player swerves with probability .05 and drives straight with probability .95.
• C)a mixed strategy equilibrium in which one player swerves with probability .10 and the other swerves with probability .90.
• D)two mixed strategies in which players alternate between swerving and driving straight.
• E)no mixed strategies.

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Definitions:

Traffic Lights

Traffic lights are signaling devices positioned at road intersections and pedestrian crossings to control the flow of traffic by displaying lights of standard colors (red, amber/yellow, and green) indicating stop, caution, and go, respectively.

Staring

Fixing one's gaze on someone or something for a long period, often in a manner that can be perceived as intense or aggressive.

Confounding Variable

An outside influence that changes the effect of a dependent and independent variable being examined in an experimental or observational study.

Independent Variable

A variable in an experiment that is manipulated or changed by the researcher to observe its effects on the dependent variable.