Question

Carefully explain the difference between a strategy (call it X) being strictly dominant over another strategy (call it Y), and a strategy being strictly dominated by another strategy. Also explain how weak dominance differs from strict dominance.

Answer 1

A strictly dominant strategy is one where no matter what other players do, that strategy will always give a higher payoff and the player will always chose a strictly dominant strategy over others.

A strictly dominated strategy is just the opposite of the strictly dominant strategy. It means no matter what other players do, this strategy will always give a lower payoff and would never be chosen by a rational player.

Weak dominance: Some payoffs are greater while some are equal or lower than other payoffs and no single decision of chosing that strategy can be made

Strict dominance: All payoffs are always dominant and greater than other payoffs and are always chosen no matter what the other player does