Accordingly, a strategy is dominant if it leads a player to better outcomes than alternative strategies (i.e., it dominates the alternative strategies). Conversely, a strategy is dominated if it leads a player to worse outcomes than alternative strategies (i.e., it is dominated by the alternative strategies).
What is the dominant strategy for Pepsi?
Pepsi’s dominant strategy is to introduce new ads .
Does Pepsi have a dominant strategy?
Neither Coke nor Pepsi has a dominant strategy . ... Coke does not have a dominated strategy. A dominated strategy is one which results in a payoff for each possible action chosen by Pepsi that is lower than if another strategy was chosen.
Does firm 1 have a dominant strategy?
2d A game is a prisoner’s dilemma if: each player has a dominant strategy, and when both players choose their dominant strategy, each gets a lower payoff than if each had chosen their dominated strategy. ... No, Firm 1 does not have a dominant strategy in this game .
What is the dominant strategy in prisoner’s dilemma?
The dominant strategy for a player is one that produces the best payoff for that player regardless of the strategies employed by other players. The dominant strategy here is for each player to defect (i.e., confess) since confessing would minimize the average length of time spent in prison.
What is player A’s dominant strategy?
strategic interdependences. A dominant strategy exists if . a player has a strategy that yields the highest payoff regardless of the other player’s choice . You just studied 26 terms! 1/26.
Does Alpha have a dominant strategy and if so what is it?
Does Alpha have a dominant strategy and if so, what is it? – No, there is no dominant strategy .
What is a strictly dominant strategy?
A strictly dominant strategy for a player yields a strictly higher expected payoff than . any other strategy available to the player , regardless of the strategies chosen by. everyone else.
Does firm B have a dominant strategy?
B. there is no dominant strategy for either firm .
What is a strictly dominated strategy?
-a strictly dominant strategy is that strategy that always provides greater utility to a the player, no matter what the other player’s strategy is ; ... A dominant strategy equilibrium is reached when each player chooses their own dominant strategy.
What is a dominant strategy and what are its benefits?
Strategic dominance is a state in game theory that occurs when a strategy that a player can use leads to better outcomes for them than alternative strategies . Accordingly, a strategy is dominant if it leads a player to better outcomes than alternative strategies (i.e., it dominates the alternative strategies).
Can there be two dominant strategies?
Can a player have two strictly dominant strategies? Give an example or prove that this is impossible. No. If si and si were both strictly dominant, si = si, then you would have ui(si,s−i) > ui(si,s−i) > ui(si,s−i) for all s−i, which is impossible.
What happens when there is no dominant strategy?
A dominant strategy is a strategy which results in the best payoff for a player no matter what the other firm does but a Nash equilibrium represents a strategy which maximizes payoff given what the other player would do. ... A game has a Nash equilibrium even if there is no dominant strategy (see example below).
Is there a dominant strategy?
In game theory, a dominant strategy is the course of action that results in the highest payoff for a player regardless of what the other player does . ... It is because a dominant strategy is the optimal strategy unconditionally i.e. there is no dependence on the strategy the other player choses.
Who has a dominant strategy?
The dominant strategy in game theory refers to a situation where one player has a superior tactic regardless of how the other players act. The Nash Equilibrium is an optimal state of the game, where each opponent makes optimal moves while considering the other player’s optimal strategies.
Can a strictly dominated strategy be a best response?
Answer: True. The strategy that strictly dominates it, by definition, yields a strictly higher payoff against all strategies and hence is a better response .
