Econ question, HELP!!!!!

[匿名]

2007-04-16 9:54 pm

2.“If a player has a dominant strategy in a simultaneous-move game, then she is sure to get her best possible outcome.” True or false? Explain and give an example of a game that illustrates your answer.

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回答 (1)

匿名

2007-04-17 11:02 pm

✔ 最佳答案

If player 1 has a dominant strategy in choosing A, it implies that player 1 will prefer A no matter what player 2 chooses. Therefore, it must be the best possible outcome.

Let L denotes loud, S denotes soft
(player 2's strategies on top, player 1's strategies on the left)
1\2 L S
L (7,5) (5,4)
S (6,4) (6,3)
Nash Equilibrium is L,L(7,5)
player 2 has a dominant strategy, say playing music, loud (5>4 and 4>3)
however, player 1 doesn't. (7>6 but 5<6)
player 1 will choose loud as well since s/he knows what player 2 will choose

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