- 2 opposite NE with incentive to deviate
- 1 stay, 2 steer
- 1 steer, 2 stay
- I can only gain what you loose (opportunity cost)
Difference to Prisoners Dilemma
- PD has just 1 clear NE in normal form and 1 better NE if collusion is possible
- as long as I don’t deviate, there is no chance of being hurt by other player
- this game has 2 NE where the activity of either player is always hurting the other player through opportunity cost
- risk of a crash which hurts both players considerably
Commitment and Comparison to 5
- commitment … would be something like being crazy in experiment 5
- strategic move of removing the steering wheel
- player is now unable to steer away such that the other player is forced to steer to avoid certain destruction
- similar to the doomsday machine which we also watched a video on