Homework 10.
Due at the beginning of you tutorial on week 12
1. Stag hunt.
Two guys go hunting for food, and each can choose to hunt stag or hunt hares. Only if
both players hunt stag will they succeed; if only one player hunts stag, he will fail. On the other hand,
the players are able to successfully hunt hares on their own—but hares are much smaller, and so have a
smaller payoff than catching (and sharing) a stag. The payoff matrix therefore looks like the following:
if both go for Stag – the payoff of each is 8; if Player 1 goes for Stag, Player 2 for Hare – payoffs are 0
and 2, if Player 1 goes for Hare, Player 2 for Stag – payoffs are 2 and 0, if both go for Hares – 2 and 2.
Draw the game as a table. What are the Nash equilibria of this game? How does this game differ from a
prisoner's dilemma, and how can participants achieve the optimal (both hunt Stag) outcome?
2. Chicken.
In the movies about the 60
th
in USA the following scene sometimes occurs. Two young lads
position their cars on the narrow road facing each other and remove the brakes. Then they start racing
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 Three '09
 NONE
 Game Theory, Mobil, payoﬀs

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