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Nash equilibrium in this game

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Solution Summary

Nash equilibrium in this game is assessed.

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I had not seen the other question, here are your answers.

Question 1

1. Does either player have a dominant strategy? Explain.

No. A strategy is dominant if, regardless of what the other player does, the strategy provides a higher payoff. In this case If D2 chooses left, D1 would be better off choosing left. If D2 chooses right, D1 should choose right. The same happens the other way as payoffs are symmetrical. So the best payoff is dependent on what the other driver does and that implies there is no dominant strategy.

2. Is Nash equilibrium in this game? Explain

In Nash equilibrium each players has no incentive to move from ...

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