2. Solving for dominant strategies and the Nash equilibrium Suppose Raphael and

Question

2. Solving for dominant strategies and the Nash equilibrium Suppose Raphael and Susan are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Raphael chooses Right and Susan chooses Right, Raphael will receive a payoff of 4 and Susan will receive a payoff of 4. Susan Left Or Right Left Right Left4,36,1 Raphael Right 7,6 4,4 Susan Raphael The only dominant strategy in this game is for Susan to choose Left The outcome reflecting the unique Nash equilibrium in this game is as follows: Raphael chooses Right and Susan chooses Left Grade It Now Save & Continue Continue without saving

Explanation / Answer

dominant strategy is the one that is the response of one person to all the other strategy of the other player.

here such strategy is susan playing left

nash equilibrium is that set of choice from which the player looses by deviating given that the other person remains intact.

so such straegy here is raphael chooses right and susan choose left

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