driver chooses simultaneously between going straight (S), swerving left (L), and swerving right (R). If one driver goes straight while the other swerves, either right or left, the one who goes straight gets payoff 3 while the other gets -1. If each driver swerves to his left, or each swerve to his right, then each gets 0 (remember, they are going in opposite directions). If both go straight, or if one swerves to his left while the other swerves to his right, then the cars crash and each gets payoff -4. Write the payoff matrix for this game а. b. Find all of the game's Nash equilibria in pure strategies.

driver chooses simultaneously between going straight (S), swerving left (L), and swerving right (R). If one driver goes straight while the other swerves, either right or left, the one who goes straight gets payoff 3 while the other gets -1. If each driver swerves to his left, or each swerve to his right, then each gets 0 (remember, they are going in opposite directions). If both go straight, or if one swerves to his left while the other swerves to his right, then the cars crash and each gets payoff -4. Write the payoff matrix for this game а. b. Find all of the game's Nash equilibria in pure strategies.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.3P

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