📚 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 for Player A means that this player will always choose this strategy because it gives them the best outcome, no matter what Player B decides to do. If Player A plays their dominant strategy, we can infer that Player B will need to adjust their strategy based on the expected outcome of Player A's choice. This is important because Player B's best response may change depending on the payoff Player A receives from their dominant strategy. For example, if Player A chooses a strategy that always results in a high score, Player B might need to select a strategy that minimizes their losses or maximizes their own score in response. Ultimately, the combination of Player A's dominant strategy and Player B's best response can lead to a Nash Equilibrium, where neither player has an incentive to change their strategy given the other's choice.

Detailed Explanation

Player B might pick a strategy that gives them less reward. Other options are incorrect because Some might think Player B will also have a strong strategy; It's a common mistake to think Player B's choice is totally separate.

Key Concepts

dominant strategy
Topic

Nash Equilibrium in Game Theory

Difficulty

easy level question

Cognitive Level

understand

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