The Laughing Man

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In the game of Chicken, made famous in the James Dean classic Rebel Without a Cause, two teenage drivers approach each other at high speed on a narrow road and whoever swerves first loses face (he is the “chicken”).29 Since each one knows that the other does not want to die in a head-on crash, each may stay the course, knowing the other has to swerve first. Of course when both are “rational” in this way, it’s a recipe for disaster (a paradox of game theory we will return to in chapter 8). So is there a strategy that wins at Chicken? Yes—relinquish your ability to swerve by conspicuously ...more
Rationality: What It Is, Why It Seems Scarce, Why It Matters
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