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

GAME 5

                                         Column
                                    Left           Right      Edge
                    Up             -10,0         -1,-1        -1,-1

Row                 Down           -8,-8         0,-10        -1,-1           
                                                                                        
                    Bottom          4, 5         7,-10         1, 1

5_1 Which of the following is true?
A. Row has no dominant strategy.
B. Row's dominant strategy is Up.
C. Row's dominant strategy is Down.
D. Row's dominant strategy is Bottom.

D. CORRECT. Neither player can gain by deviating.

There is another equilibrium, too, though, so keep looking. If there is a dominant strategy equilbrium, it is unique, but that is not true of Nash equilibria.

Return to Self Test 1.

Send comments to Prof. Rasmusen. Last updated: October 30, 1996