Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The Nash Equilibrium is (A, C)
B
The Nash Equilibrium is (B, D)
C
There is no Nash Equilibrium
D
The Nash Equilibrium is (B, C)
Understanding the Answer
Let's break down why this is correct
Answer
In this game, since Player 1 has a dominant strategy of A, it means that Player 1 will always choose A because it provides a better outcome regardless of what Player 2 does. Player 2's best response to Player 1 choosing A is strategy C, which means that when Player 1 plays A, Player 2 will choose C for the best result. This situation leads us to a Nash Equilibrium at the strategy pair (A, C), where neither player has an incentive to change their strategy. In other words, Player 1 is sticking with A because it is the best choice, and Player 2 is sticking with C because it is the best response to A. For example, if Player 1's payoff with A and Player 2's payoff with C are both maximized at this point, they will both stay with these strategies.
Detailed Explanation
In this game, Player 1 will always choose A because it's their best option. Other options are incorrect because This option suggests that Player 1 would choose B, but A is their best choice; This option implies that players can't find a stable choice.
Key Concepts
Nash Equilibrium
dominant strategy
iterative elimination of dominated strategies
Topic
Nash Equilibrium in Game Theory
Difficulty
hard level question
Cognitive Level
understand
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