Given the following oneshot normal form game answer the 3 qu

Given the following one-shot, normal form game, answer the 3 questions: Player 2 Strategy D E F A -200,150 350,100 -50,600 Player 1 B 200,-300 400,400 300,100 C -150, 200 -250, 550 750, -350 Question 1: nFind each players dominant strategy, if it exists Question 2: Find each players secure strategy Question 3: Find the Nash equilibrium

Solution

Answer :

1) A dominant strategy is strategy which yields maximum pay off to a player irrespective of what the other player might be playing.However a player may or may not have such a strategy in a game.In the above game none of the players either 1 or 2 has a dominant strategy.

2) Each player has only one secure strategy.Player 1 playing B and player 2 playing E.Any other option that each player exercises brings him to a situation of loss .Thus only (A , B) playing (B,E) with pay off (400,400) is a secure strategy where each one doesnt suffer a loss.

3) Nash equilibrium in the above game is again the same secure strategy i.e. (player 1 , player 2) (B , E) with pay off (400 , 400).