Eco 550

Assignment 3

1. Some games of strategy are cooperative. One example is deciding which side of the road to drive on. It doesn't matter which side it is as long as everyone chooses the same side. Otherwise, everyone may get hurt.

Driver 2

Left Right

Driver 1 Left 0, 0 -1000 -1000

Right -1000, -1000 0, 0

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

In my view there is no dominant strategy for either driver 1 or 2. There is no pure strategy instead there seems to be a mixed strategy for both drivers. If driver 1 chooses to go left, and if driver 2 also chooses left less chance for a collision, and the same is true with both drivers going to the right. On other hand if the drivers choose opposite directions this can result in an accident.

Driver 1 can go...