Asked by
Brian Klesch
on Oct 14, 2024
Verified
Big Pig and Little Pig have two possible strategies, Press the Button, and Wait at the Trough.If both pigs choose Wait at the Trough, both get 3.If both pigs choose Press the Button, then Big Pig gets 8 and Little Pig gets 2.If Little Pig presses the button and Big Pig waits at the trough, then Big Pig gets 10 and Little Pig gets 0.Finally, if Big Pig presses the button and Little Pig waits at the trough, then Big Pig gets 2 and Little Pig gets 1.In Nash equilibrium,
A) Little Pig will get a payoff of 1 and Big Pig will get a payoff of 2.
B) Little Pig will get a payoff of 2 and Big Pig will get a payoff of 8.
C) both pigs will wait at the trough.
D) Little pig will get a payoff of zero.
E) the pigs must be using mixed strategies.
Nash Equilibrium
A concept in game theory where each player's strategy is optimal given the strategies of all other players, resulting in a situation where no player has anything to gain by changing only their strategy.
Press the Button
A metaphorical phrase often used to describe initiating a process or action with a simple, decisive move.
Payoff
represents the return or outcome received from a certain action or investment.
- Familiarize oneself with the theory of Nash equilibrium and its implementation in multiple strategic competitions.
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Learning Objectives
- Familiarize oneself with the theory of Nash equilibrium and its implementation in multiple strategic competitions.