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Two hunters went out into the forest to hunt for deer. Each take their position in the forest, and wait for the stag to come by. But as they are standing there, a rabbit runs by each (not necessarily at the same time), and each considers leaving his post to pursue the rabbit. If either does this, neither will catch the stag.
Game theorists have studied a game based on this situation, the Stag Hunt game.
Stag Rabbit
Stag 3,3 0,2
Rabbit 2,0 2,2
Find all Nash equilibrium to this game (remember, they tend to come in odd numbers). Which do you think is most likely to be realized, and why?
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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