📚 Learning Guide
Game Theory
easy

In a game where two players can choose either to cooperate or defect, which of the following scenarios illustrates a dominant strategy for both players?

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Choose the Best Answer

A

Both players cooperate and receive a moderate payoff.

B

One player defects while the other cooperates, leading to a high payoff for the defector and a low payoff for the cooperator.

C

Both players defect, resulting in low payoffs for both.

D

Both players always choose to cooperate, maximizing total payoffs.

Understanding the Answer

Let's break down why this is correct

Answer

In game theory, a dominant strategy is a choice that is best for a player regardless of what the other player decides. For both players to have a dominant strategy, their best option must be to defect, meaning they choose not to cooperate. For example, imagine two players can either share a reward or keep it all for themselves. If both players know that they will get a larger reward by defecting, even if the other cooperates, then defecting becomes the dominant strategy for both. In this case, both players will choose to defect, leading to a situation where neither of them gets the best possible outcome, but they still act in their own self-interest.

Detailed Explanation

When one player defects and the other cooperates, the defector gets a big reward. Other options are incorrect because Some might think that cooperating is always good; It's easy to think that both players defecting is a good choice.

Key Concepts

dominant strategy
Topic

Game Theory

Difficulty

easy level question

Cognitive Level

understand

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