Question

QUESTION 6

1. Consider the following game. Player 1 can choose Strategy A or B while Player 2 can choose Strategy Y or Z

   	Strategy Y	Strategy Z
   Strategy A	1, 10	1, -5,000
   Strategy B	2, 0	2, 2

   Which of the following statements is correct?

   		Both players have a dominant strategy
   		Neither player has a dominant strategy
   		Player 1 has a dominant strategy but Player does not
   		Player 1 does not have a dominant strategy but player 2 does

Answer 1

Ans.- Player 1 has a dominant strategy but Player 2 does not.

When player 1 chooses A, player 2 will choose Y

When player 1 chooses B, player 2 will choose Z.

Hence, there is no dominant strategy for player 2.

When player 2 chooses Y, player 1 will choose B

When player 2 chooses Z, player 1 will choose B.

Hence, the dominant strategy for player 1 is B.