This is an example of an Adaptive Dynamic Game (related to Evolutionary stable Equilibrium) where we keep playing the game and best responding, but never settling. (This concept was introduced to me by Game Theory professor, Roy Gardner) The neat thing about it is that, theoretically, the game could go on forever, but it doesn't. So we need to add something to the model. This is the crucial step of game theory, defining the game.
Let's go back, and again we could argue that waiting is a possibility. So, there is something idiosyncratic about the players that might make them more likely to wait. You could even have a case, where they both wait. So there might be a polite type and a rude type. We can go further by adding more moves. Here are a few strategies observed in the field: 1) the "moth" where they flatten themselves against the side; 2) the "bulldozer" where there is no turning; and 3) "committed" where the individual chooses a direction and looks down. Another addition to the model is patience. Some are more in a hurry than others, so maybe after three tries, you reset the game. But the number is arbitrary to each player. You want to announce that you want to reset the game with a perfect stranger. In the US, we like to be blunt, but no one ever says "Hey, this isn't working, let's start over." Another field observation, almost always, and usually between men, someone smugly states "age before beauty" or "shall we dance?"A similar concept is the Four-Way Stop problem, but with more complexity.
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