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and Player B can choosete following game and Player B can choose either Left or

ID: 1125762 • Letter: A

Question

and Player B can choosete following game and Player B can choose either Left or Right. The payoffs are given in the following table where the number on the left is the payoff to Player A, and the number on the right is the payoff to Player B. Suppose that two players are playing the following game. Player A can choose either Top or Bottom, Player B Left Right Top Player A 3 4 Bottom Does Player A have a dominant strategy? If so, what is it? O Top is a dominant strategy for Player A O Bottom is a dominant strategy for Player A O Both of the above O None of the above

Explanation / Answer

Player A has a dominant strategy of selecting top. This is the strategy that it will choose for whatever strategy choosen by player B. The payoff given to player are 5 vs 3 and 7 vs 6 and are in favour of top. Therefore top is the dominant strategy for player A

Player B does not have a dominant strategy because it seems to be following player A. Correct choice is none of the above.

Kindly note that the Nash equilibrium in this case is top right. Hence for any question that has another strategy set, it is not Nash equilibrium. Only question 6 shows Nash equilibrium while other do not have a Nash equilibrium.