Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A firm consistently lowers prices to undercut competitors.
B
A player always chooses to cooperate in a Prisoner's Dilemma.
C
A student studies hard for every exam regardless of the difficulty.
D
A voter chooses a candidate based solely on party affiliation.
Understanding the Answer
Let's break down why this is correct
Answer
A dominant strategy in game theory means that a player has one option that is always the best, no matter what others choose. For example, imagine two friends, Alice and Bob, deciding whether to study for an exam or go to a party. If studying always leads to a higher score for Alice, regardless of whether Bob studies or parties, then studying is her dominant strategy. This means Alice will choose to study every time because it guarantees her the best outcome. In this scenario, Alice's choice shows how a dominant strategy works by being the best option no matter what Bob does.
Detailed Explanation
A firm that lowers prices is always making a smart choice. Other options are incorrect because Choosing to cooperate in a Prisoner's Dilemma isn't always the best; Studying hard for every exam seems good, but it may not be needed for easy tests.
Key Concepts
dominant strategy
Topic
Dominant Strategies in Game Theory
Difficulty
easy level question
Cognitive Level
understand
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