291 0 This problem is designed to give you practice in readi

29.1 (0) This problem is designed to give you practice in reading a game matrix and to check that you understand the definition of a dominant strategy. Consider the following game matrix.

(a) If (top, left) is a dominant strategy equilibrium, then we know that a >__________, b >__________,_________ > g,   and __________> h.

(b) If (top, left) is a Nash equilibrium, then which of the above inequalities must be satisfied? _________

(c) If (top, left) is a dominant strategy equilibrium, must it be a Nash equilibrium? Why? _________

Solution

If (top, left) is a dominant strategy equilibrium, then we know that a > e, b > d, c > g and f > h.

If (top, left) is a Nash equilibrium, then which of the above inequalities must be satisfied? a>e and b>d

If (top, left) is a dominant strategy equilibrium, must it be a Nash equilibrium? Yes dominant strategy equilibrium is always NASH equilibrium.