Consider the payoff matrix for a game of chicken:
player II
YIELD NOT YIELD
YIELD (3,3) (2,4)
player I
NOT YIELD (4,2) (1,1)
1. Are there dominant strategies for either party?
2. Is the outcome (YIELD,YIELD) a Nash equilibrium?
3. Is the outcome (NOT YIELD, NOT YIELD) a Nash equilibrium?
4. Is the outcome with payoff (2,4) a Nash equilibrium?
This was given to me as an example for our exam questions, but the teacher never gave us answers. I was just hoping someone could help me understand in the simplest possible way how I can come up with a solution (tricks appreciated too).
Can you do the rest? A general strategy for Nash Equilibrium is to think if a player could do better if he did change his strategy.