Compute the Mixed-Strategy Nash equilibrium (MSNE) / equilibria of the following Game of Chicken: two players are driving their cars against each other and must decide whether or not to swerve

Economics Feb 22, 2022

Compute the Mixed-Strategy Nash equilibrium (MSNE) / equilibria of the following Game of Chicken: two players are driving their cars against each other and must decide whether or not to swerve. The payoffs are as in the following table. Sketch the graph of best-responses. Player 2 Straight Swerve 0,0 3.1 1.3 2.2 Player Straight Swerve