Question

Go to media space: newspapers, magazines, film/video is ok as long as it is credible (published by a legitimate publisher). Find an example of either:

a. stag-hunt game

or

b. hawk-and-dove game

Write a 1-page report in which you

i) summarize the story in the article or video;

ii) draw a game in its normal form (pick payoffs appropriately and corresponding to the story in the article/video) and

iii) comment on how well the game captures the backbone of the incentives in the article (what other incentives or features of the story are being assumed away?).

Don't forget to attach the source. I have to be able to access it and review it.

Answer 1

STAG - HUNT GAME

There are two players 1 and 2 , they go on a hunt  , they could either hunt stag or they could hare. Now, in order to hunt stag they need cooperation of each other and in this case utility is maximum if they could get stag , while for hare they can hunt individually. So given is the payoff matrix ,

PLAYER 2
PLAYER 1		STAG	HARE
STAG	3,3	0,1
HARE	1,0	1,1

IN THIS GAME THERE ARE TWO NASH EQULIBRIA -

• See if player 1 goes for stag along with cooperation from player 2 who is also on stag hunt than maximum utility is achieved(3,3).
• If player1 goes alone for stag hunt which is not possible and 0 utility is derived here whereas player 2 opt for hare hunt thus (0.1) combination arises.
• If player 2 goes alone for stag hunt which is not possible and 0 utility is again derived here whereas player 1 opt for hare hunt thus (1,0) combination arises.
• And, at last if both players goes for hare hunt which is possible even individually, thus utility here comes is (1,1).
• Thus, here two equilibrium points arises (3,3) and (1,1).