Game Theory provides a useful lens for viewing strategic decisions and interactions. This semester Iβm teaching game theory at Susquehanna University and also including the lecture videos free of charge for those whoβd like to learn a bit about this fantastic subject! Subscribe to receive updates!
In this video lesson, weβre learning a lot of basic concepts within game theory, including about The Chicken Game. Traditionally, the chicken game is where two players are driving vehicles straight at each other. They compete to see who will choose not to be βchickenβ and drive straight and who will swerve. Itβs really a pretty stupid game, but it has real world (and serious) applications, especially when thinking about nuclear war.
Here is the description of the chicken game from Wikipedia:
A formal version of the game of Chicken has been the subject of serious research in game theory.[6] Two versions of the payoff matrix for this game are presented here (Figures 1 and 2). In Figure 1, the outcomes are represented in words, where each player would prefer to win over tying, prefer to tie over losing, and prefer to lose over crashing. Figure 2 presents arbitrarily set numerical payoffs which theoretically conform to this situation. Here, the benefit of winning is 1, the cost of losing is -1, and the cost of crashing is -1000
There are actually two Nash equilibria of the game - each outcome where one swerves and one drives straight is a situation where neither player wants to change their choice. (More on the Nash equilibrium coming soon!)
A great example of the Chicken Game was shown in the 1984 movie, Footloose. Kevin Bacon engages in a game of chicken with farm tractors. To watch the clip, and for my analysis, check out the link below!