Game Theory - Chicken Game

Question 1

What is the Chicken Game in game theory?

Answer 1

A game theory scenario where two players must decide to yield or stay straight, with risk of mutual harm if neither yields.

Question 2

In the Chicken Game, what is the worst possible outcome?

Answer 2

Both players stay straight, leading to a collision with the lowest payoff for each (0,0).

Question 3

What are the two Nash equilibria in the Chicken Game?

Answer 3

One player swerves while the other stays straight.

Question 4

Explain why the Chicken Game has two Nash equilibria.

Answer 4

Because in each equilibrium, one player’s best response is to yield while the other does not, resulting in no incentive for unilateral change.

Question 5

What is the main challenge in the Chicken Game?

Answer 5

Balancing the desire to avoid yielding with the risk of mutual harm if neither player yields.

Question 6

Fill in the blank: The Chicken Game demonstrates the dynamics of ______ and ______.

Answer 6

conflict, cooperation

Question 7

Why might players use a mixed strategy in the Chicken Game?

Answer 7

To introduce unpredictability by randomly choosing between swerving and staying straight, reducing the risk of a collision.

Question 8

What real-world scenario is commonly modeled by the Chicken Game?

Answer 8

Nuclear deterrence during the Cold War, where neither side wants to yield but also wants to avoid mutual destruction.

Question 9

Give an example of a Chicken Game in politics.

Answer 9

Government shutdowns where parties refuse to compromise, risking damage if no agreement is reached.

Question 10

Explain how ‘pre-commitment’ is used in the Chicken Game.

Answer 10

A player signals their commitment to not yielding, forcing the other to yield or face the worst outcome.

Question 11

What is the role of ‘bluffing’ in the Chicken Game?

Answer 11

Bluffing is used to make the other player believe one won’t yield, pressuring them into swerving.

Question 12

In the Chicken Game, what happens if one player removes their ability to yield?

Answer 12

It forces the other player to yield to avoid the worst outcome (collision).

Question 13

Fill in the blank: The Chicken Game reflects high-stakes ______ where both players try to avoid being the first to yield.

Answer 13

brinkmanship

Question 14

What is the payoff structure in the Chicken Game if both players yield?

Answer 14

A moderate payoff for each player (2,2), as they both avoid the worst-case scenario but do not ‘win.’

Question 15

How does the Chicken Game differ from pure coordination games?

Answer 15

It involves conflict where one player’s victory implies the other’s concession, unlike pure coordination which benefits all.

Question 16

Why is randomization a useful strategy in the Chicken Game?

Answer 16

Randomization makes behavior unpredictable, reducing the chances of both players staying straight and colliding.

Question 17

How is the Chicken Game applied in competitive business strategies?

Answer 17

Companies may refuse to yield in price wars, risking mutual losses if neither backs down.

Question 18

Explain the concept of ‘escalation control’ in the Chicken Game.

Answer 18

Choosing to de-escalate to avoid mutual harm, balancing assertiveness with caution.

Question 19

What psychological factors influence decisions in the Chicken Game?

Answer 19

Pride, reputation, and fear of appearing weak influence players’ willingness to yield or stay straight.

Question 20

Fill in the blank: In international relations, the Chicken Game often models situations of ______.

Answer 20

brinkmanship

Question 21

How can social pressure create a Chicken Game scenario?

Answer 21

Peers may dare each other to engage in risky behavior, with each person reluctant to ‘yield’ or back down.

Question 22

What is an ‘Asymmetric Chicken Game’?

Answer 22

A version where players have different stakes or costs, affecting their likelihood of yielding.

Question 23

Why might a player choose not to yield in a repeated Chicken Game?

Answer 23

To build a reputation of strength, influencing future interactions.

Question 24

How does the Chicken Game explain labor strike negotiations?

Answer 24

Both management and unions risk losses but may refuse to yield, leading to a costly stalemate if neither concedes.

Question 25

Fill in the blank: A mixed strategy in the Chicken Game introduces ______ into each player’s choices, preventing predictability.

Answer 25

randomness

Question 26

Explain ‘mutual harm’ in the Chicken Game context.

Answer 26

If neither player yields, both face the worst-case scenario (collision), representing mutual loss.

Question 27

Why is reputation important in the Chicken Game?

Answer 27

Reputation affects a player’s likelihood to yield or stay straight in future interactions, influencing the opponent’s expectations.

Question 28

What does the ‘Both Stay Straight’ outcome in the Chicken Game represent?

Answer 28

The worst outcome, with mutual harm, like a collision with zero payoff for each player.

Question 29

How can negotiation help in the Chicken Game?

Answer 29

Open communication allows players to reach a compromise, reducing the risk of mutual harm.

Question 30

What does ‘escalation’ mean in the context of the Chicken Game?

Answer 30

Pushing limits or refusing to yield, which can lead to higher risks and potential conflict.