Please write a clear and well-argued answer. 1. Consider the following game. Two
ID: 1111672 • Letter: P
Question
Please write a clear and well-argued answer.
1. Consider the following game.
Two players can choose either to hunt a stag, or to hunt a hare.
i. If a player hunts a stag, then they must have the other player’s cooperation in order to succeed.
ii. A player can hunt a hare by themself, but a hare is worth less than a stag.
The following payoff matrix depicts this situation.
What is the Nash equilibrium?
Figure 1: Stag Hunt Game Plaver B Stag 2,2 1,0 Hlare Stag 0,1 1,1 Hare Number left (right) of comma refers to A's (B's) payoff.Explanation / Answer
A Nash equilibrium is an action profile a with the property that no player i can do better by choosing an action different from ai , given that every other player j adheres to aj .
such outcome here is
(stag,stag) and (hare,hare)