Self-test on dominant strategies, dominated strategies, and Nash equilibrium

GAME 2

                                         Column
                                    Left         Right
                Up                -10,0         -1,-1
 Row                                         
                Down              -8,-8          0,-10

2_3 The dominant-strategy equilibrium is :
A. Up, Left
B. Up, Right
C. Down, Left
D. Down, Right

A. TRY AGAIN. Right is dominated, because Column gets a payoff of -1 from it if Row goes Up, compared with a payoff of 0 from Left; and a payoff of -10 from it if Row goes Down, compared with a payoff of -8 from Left. Thus, this cannot be a dominant strategy equilibrium.

Return to Self Test 1.

Send comments to Prof. Rasmusen. Last updated: January 18, 1997.