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Medium · Game Theory & Logic · Quant Trader interview question · game-theory, nash-equilibrium, probability, mixed-strategy
In the classic Hawk-Dove game (also known as Chicken), two players simultaneously choose one of two strategies: Hawk or Dove. If both players choose Dove, they share the payoff equally. If one chooses Hawk and the other chooses Dove, the Hawk gets all the payoff and the Dove gets nothing. If both choose Hawk, they both suffer a large penalty. Let $V > 0$ be the value of the resource being contested, and $C > V$ be the cost of a fight. The payoff matrix is as follows: | | Hawk | Dove