Stag hunt , Game Theory

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Scenario

The French thinker, Jean Jacques Rousseau, presented the subsequent state of affairs. 2 hunters will either jointly hunt a stag (an adult deer and rather massive meal) or individually hunt a rabbit (tasty, however substantially less filling). searching stags is kind of difficult and needs mutual cooperation. If either hunts a stag alone, the prospect of success is minimal. searching stags is most useful for society however needs lots of trust among its members.

Description

There are 2 pure strategy equilibria. each players like one equilibrium to the opposite - it's each Pareto optimal and Hicks optimal. However, the inefficient equilibrium is a smaller amount risky because the payoff variance over the opposite player's methods is lower. Specifically, one equilibrium is payoff-dominant whereas the opposite is risk-dominant.

Example



Hunter 2



stag

rabbit

Hunter 1

stag

10,10

0,8

rabbit

8,0

7,7

General Form



Player 2



L

R

Player 1

U

a,w

b,x

D

c,y

d,z

Where the following relations hold:
a > c >= d > b 
w > x >= z > y

 


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