A) observes P’s move and then makes her own move. For brevity, we write a policy of A as σ=a1a2, where a1 (resp. a2) is the action she takes when observing P swerving (left node) (resp. when observing P daring (right node)). P will dare (D) if they predict ds and swerves (S) if they predict dd. The ordering of moves and the payoffs are displayed in Figure 1.
Why does Alice get more utility from swerving than daring, in the case where the predictor swerves? ETA: Fixed typo
Why does Alice get more utility from swerving than daring, in the case where the predictor swerves?ETA: Fixed typoSeems like the payoffs of the two agents were swapped in the figure; this should be fixed now. Thanks for pointing it out!