Payoff Matrix (Nash Equilibria Highlighted)
| 🦌 Stag | 🐇 Hare | |
|---|---|---|
| 🦌 Stag | 5, 5 | 0, 3 |
| 🐇 Hare | 3, 0 | 3, 3 |
A coordination game with two Nash equilibria. Hunt stag together for a big reward, or hunt hare alone for a smaller but guaranteed payoff. Risk-dominance vs payoff-dominance in action.
| 🦌 Stag | 🐇 Hare | |
|---|---|---|
| 🦌 Stag | 5, 5 | 0, 3 |
| 🐇 Hare | 3, 0 | 3, 3 |
The Scenario: Two hunters can cooperate to hunt a stag (large reward) or hunt hare alone (smaller, guaranteed reward). Success in hunting stag requires both hunters to participate.
Nash Equilibria: This game has two pure strategy Nash equilibria:
• (Stag, Stag): Both hunt stag → (5, 5) - Payoff-dominant (best outcome)
• (Hare, Hare): Both hunt hare → (3, 3) - Risk-dominant (safer choice)
The Dilemma: Hunting stag gives the best payoff if both cooperate, but if your partner hunts hare, you get nothing. Hunting hare is safer - you always get 3.
Trust vs Safety: This models social contracts, teamwork, and coordination problems. Do you trust your partner to cooperate for the better outcome, or play it safe?
Real-world Applications: Technology standards adoption, business partnerships, international climate agreements, and any situation requiring mutual cooperation with asymmetric risk.