📚 Learning Guide
Dominant Strategies in Game Theory
hard

In a game with incomplete information where players have dominant strategies, which of the following statements about mixed strategies and Nash equilibrium is true?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

Players will always choose pure strategies to reach a Nash equilibrium.

B

Mixed strategies cannot exist in a Nash equilibrium under incomplete information.

C

A Nash equilibrium can be achieved using mixed strategies even when players have incomplete information.

D

Dominant strategies are irrelevant in the context of Nash equilibrium.

Understanding the Answer

Let's break down why this is correct

Answer

In a game with incomplete information, players may not know everything about their opponents, but if each player has a dominant strategy, it means that each player has a best action to take regardless of what others do. In such situations, players will naturally choose their dominant strategies, leading to a Nash equilibrium. This is because a Nash equilibrium occurs when no player can improve their outcome by changing their strategy while the others keep theirs the same. For example, if two players are deciding whether to cooperate or compete, and both find that competing is always better for them no matter what the other does, they will both choose to compete, resulting in a stable outcome. Therefore, in this context, mixed strategies are not necessary since players will stick to their dominant strategies.

Detailed Explanation

A Nash equilibrium can happen with mixed strategies. Other options are incorrect because Some might think players always pick one clear choice; It's a common mistake to think mixed strategies can't work with incomplete information.

Key Concepts

Nash equilibrium
mixed strategies
incomplete information.
Topic

Dominant Strategies in Game Theory

Difficulty

hard level question

Cognitive Level

understand

Ready to Master More Topics?

Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.