QUESTION 4 Player ll E D A 33 4214 B 20 30 11 C 11 2102 Play

QUESTION 4 Player ll E D A 3,3 4,21,4 B 2,0 3,0 1,1 C 1,1 2,-10,2 Player Consider the game above. Select all that apply. Oa Strategy B weakly dominates C. Ob. The game does not have a dominant strategy solution. C. (A,D) is the dominant strategy solution. O d. Strategy D weakly dominates E. O e. F is a dominant strategy.

Solution

d) Strategy D weakly dominates E.

This means D gives at least one set when Payoff of D is greater than E and all other set where D = E. In this case, D is superior to E when Player 1 chooses A and C and becomes equal to E when Player 1 chooses B.

e) F is a dominant strategy.

A is the dominant strategy of Player 1 because it provides higher payoff to Player 1 as compared to any other payoff irrespective of decision of Player 2.

F is the dominant strategy of Player 2 because it gives higher payoff to Player 2 whether Player 1 chooses A, B or C.

So, (A, C) is the dominant strategy solution of this game.