Two Players Are Engaged in a Game of "Chicken

question 3

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 3 if the other player Swerves and a payoff of -12 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 0.80 and drives straight with probability 0.20.
• B)a mixed strategy equilibrium in which one player swerves with probability 0.80 and the other swerves with probability 0.20.
• C)a mixed strategy in which each player swerves with probability 0.40 and drives straight with probability 0.60.
• D)two mixed strategies in which players alternate between swerving and driving straight.
• E)no mixed strategies.

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Definitions:

Egalitarian Principle

A philosophical doctrine emphasizing equality in rights and opportunities among people.

Market-based Approach

An economic strategy that relies on market forces such as supply and demand to address issues and allocate resources.

Socialized Approach

A method or practice where resources are owned, managed, and provided by the community as a whole or by a government, often emphasizing universal access to goods and services.

Single-payer Approach

A healthcare system where a single public or quasi-public agency organizes health care financing, but delivery of care remains largely private.