📚 Learning Guide
Nash Equilibrium in Game Theory
easy

In a game theory scenario, if Player A has a dominant strategy that leads to a payoff, what can we infer about Player B's strategy assuming Player A plays their dominant strategy?

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Choose the Best Answer

A

Player B will also have a dominant strategy.

B

Player B's strategy does not depend on Player A's strategy.

C

Player B will always achieve a higher payoff.

D

Player B may choose a strategy that leads to a lower payoff than if Player A did not have a dominant strategy.

Understanding the Answer

Let's break down why this is correct

Answer

In game theory, a dominant strategy is one that provides a player with the best outcome, no matter what the other player does. If Player A has a dominant strategy and chooses to play it, we can infer that Player B must consider how to respond to Player A's choice to maximize their own payoff. Player B may need to adjust their strategy based on the expected outcome of Player A's dominant play. For example, if Player A always chooses to cooperate in a game, Player B might find it beneficial to also cooperate to achieve the best possible result for themselves. This situation can lead to a Nash Equilibrium, where both players are making the best choices they can, given the strategy of the other player.

Detailed Explanation

Player B might pick a strategy that gives them less reward. Other options are incorrect because Some think Player B must also have a best choice; It's a common mistake to think Player B's choices don't matter.

Key Concepts

dominant strategy
Topic

Nash Equilibrium in Game Theory

Difficulty

easy level question

Cognitive Level

understand

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