Question

Two people enter a bus. Two adjacent cramped seats are

Q: Answer-Two people enter a bus. Two adjacent cramped seats are free. Each person must decide whether to sit...

There exist only one pure strategy Nash equilibrium sit, sit and the argument is same as that of Prisoners Dilemma discussed in theory.

free. Each person must decide whether to sit or stand. Sitting alone is more comfortable than sitting next to the other person, which is more comfortable than standing. Suppose that each person cares only about her own comfort. Model the situation as a strategic game. Find its Nash equilibrium (equilibria?).

A (stand, stand)

B (sit, stand)

C (stand, sit)

D (sit, sit)

E Doesn’t exist

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Two people enter a bus. Two adjacent cramped seats are

Solution