📚 Learning Guide
Dominant Strategies in Game Theory
easy

In a two-player game, if both players have a dominant strategy that leads to a Nash equilibrium, what can be concluded about their strategies?

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Learning Path

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Choose the Best Answer

A

Both players will always cooperate.

B

Each player's strategy is the best response to the other's strategy.

C

One player will always lose.

D

The game has no stable outcome.

Understanding the Answer

Let's break down why this is correct

Answer

In a two-player game, a dominant strategy for each player means that no matter what the other player does, each player will always choose their dominant strategy because it leads to the best outcome for them. When both players have a dominant strategy, and they choose to play it, this results in a Nash equilibrium, which is a situation where neither player can improve their outcome by changing their strategy alone. This means that both players are making the best decision they can, given the decision of the other player. For example, if Player A always chooses to play "rock" and Player B always chooses to play "scissors," then they reach a stable point where neither player would want to change their choice since doing so would not benefit them. Therefore, we can conclude that both players are following their best strategies, leading to a predictable and stable outcome in the game.

Detailed Explanation

Each player chooses the best move based on what the other player is doing. Other options are incorrect because It's a common mistake to think both players will always work together; Some might think one player must lose.

Key Concepts

Nash equilibrium
Topic

Dominant Strategies in Game Theory

Difficulty

easy level question

Cognitive Level

understand

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