Consider the game of Chicken in which each player has the option to “get out of the way” and “hang tough” with payoffs:       Get out of the way Hang tough Get out of the way 2,2 1,3 Hang tough 3,1 00   a. Find all pure strategy Nash equilibria, if they exist b. Let k be the probability that player 1 chooses “hang tough” and u be the probability that player two chooses “hang tough.” Find the mixed stragety Nash equilibria, if they exist

Managerial Economics: A Problem Solving Approach
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Consider the game of Chicken in which each player has the option to “get out of the way” and “hang tough” with payoffs:

 

 

 

Get out of the way

Hang tough

Get out of the way

2,2

1,3

Hang tough

3,1

00

 

a. Find all pure strategy Nash equilibria, if they exist
b. Let k be the probability that player 1 chooses “hang tough” and u be the probability that player two chooses “hang tough.” Find the mixed stragety Nash equilibria, if they exist
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