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Midterm #1
This test contains three problems. Each part of each question is worth 10 points
for a maximum of 80 points. Answer all questions (showing your work where
necessary). You have 75 minutes to complete the test. Good Luck!
1.
Chicken:
Abe and Bob are each hoping to win the heart of Claire. In order to prove
their manhood, they decide to engage in a game of Chicken. The game of Chicken is
played as follows:
toward each other on a collision course.
At least one of the players must swerve to the side, or they will crash into each
other.
If neither player swerves, they crash, and the payo/s are 10 to both players.
If one player swerves and the other does not, the player who swerves is embarrased
and receives a payo/ of 1. The player who does not swerve receives a payo/ of
5 (4 for winning Claire±s heart, and 1 for proving his manhood to the world).
If both swerve, they tie. They are both embarrased, and each has a 5050 chance
to win Claire±s heart. This implies an expected payo/ of 1 for each player.
(a)
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 Spring '10
 Jack
 Game Theory

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