Game Theory Series Definitions Normal form game • Extensive form game • Cooperative game Equilibrium Concepts Nash equilibrium • Subgame perfect Nash equilibrium • Backwards induction Games Prisoner's dilemma • Chicken game • Hawk-Dove game • Ultimatum game • Coordination game • Dictator game

A chicken game is a game theory set up that typically decribes two players heading toward each other. If the players continue on the same path, they bump into each other; if one swerves out of the way and other doesn't, the swerver "loses" and is labeled the chicken, while the second, implicitly braver player, wins.

The payoff matrix is as follows:

Swerve Continue Straight 0, 0 -1, +1 +1, -1 -2, -2

(This set up implies two players are merely walking towards each other; if they were, say, driving, the Continue Straight/Continue Straight choice would constitute a much higher negative payoff. While these differences in payoffs matter for calculating mixed strategy Nash equilibrium, only order matters for regular Nash equilibrium)

## Analysis

The NE in this scenario are Continue Straight/Swerve and Swerve/Continue Straight.