Question

Game Theory

Iterated Elimination: In the following normal-form game, which strategy profiles survive iterated elimination of strictly dominated strategies? 4.5 Player 2 L C R 6,8 2,6 8,2 Player 1 M 8,2 4,4 9,5 D 8,10 4,6 6,7

Answer 1

Answer 4.5

If Player 2 chooses L , Player will choose either M or D(because he will get higher payoff if it chooses M or D), If Player 2 chooses C , Player will choose either M or D and If Player 2 chooses R , Player will choose either M. Hence, Player 1 will always choose M whatever Player 2 chooses. Hence Strategy M is a dominant strategies and hence Strategy U and D are strictly dominated strategy and hence both gets eliminated.

As Player 1 will always choose M, we can see from above that Player 2 will get highest payoff if Player 2 chooses R. Hence, Player 2 will choose R and eliminate C and L.

Hence Strategy Profile that survives after iterated elimination is (M , R)