chapter nash equilibrium(ii).pptVIP

2. Multiple Equilibria NE I-Focal Points Consider the following game. Tom and Jerry drive in two cars on a two lane road and in opposite directions. 2. Multiple Equilibria NE I-Focal Points They can drive on the right or on the left, but if they mis-coordinate they cause a traffic crash. 2. Multiple Equilibria NE I-Focal Points The game can be represented as follows: 1, 1 0, 0 0, 0 1, 1 R L R L 1, 1 0, 0 0, 0 1, 1 R L R L 2. Multiple Equilibria NE I-Focal Points We expect both drivers