QUESTION 2 Player lI D E A 00 02 21 B 12 1 00 Player12 1 Con

QUESTION 2 Player lI D E A 0,0 0,2 2,1 B 1,2 1, 0,0 Player12 1, Consider the strategic form game above and select all that apply. Strategy A is not dominant for Player 1. Strategy B is weakly do Strategy E is dominated by strategies C and D for player 2. Strategy E is never a best response. minant for player I.

Solution

a) Strategy A is not dominant for Player 1.

Dominant strategy is a strategy for a player i.e. best response to all strategy profile of other player. Strategy A provides 0 payoff when Player 2 choose C or D.

b) Strategy E is never a best response.

It is because it provide least payoff to the player.