Key Takeaways. According to game theory, the dominant strategy is the optimal move for an individual regardless of how other players act. A Nash equilibrium describes the optimal state of the game where both players make optimal moves but now consider the moves of their opponent.
Answer: Neither player has a dominant strategy. For example, if Shelia plays A and Thomas plays D then Shelia's payoff is 14. But if Shelia plays B and Thomas plays C, then Sheilas's payoff is 15. A similar argument shows that Thomas also does not have 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. Not all players in all games have dominant strategies; but when they do, they can blindly follow them.
No, there is no strategy for player 1 such that the payoff received by player 1 is always higher, regardless of the strategy chosen by player 2. Neither U nor M dominates the other, and D does not dominate these strategies.
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).
The correct answer is b) A strategy that is the best strategy to play, regardless of another player's strategy.
In game theory, strategic dominance (commonly called simply dominance) occurs when one strategy is better than another strategy for one player, no matter how that player's opponents may play. Many simple games can be solved using dominance.
The principle of dominance states that if one strategy of a player dominates over the other strategy in all conditions then the later strategy can be ignored. A strategy dominates over the other only if it is preferable over other in all conditions.