Self-test on dominant strategies, dominated strategies, and Nash equilibrium

GAME 2

                                         Column
                                    Left         Right
                Up                -10,0         -1,-1
 Row                                         
                Down              -8,-8          0,-10

2_1 Which of the following is true?
A. Row has no dominant strategy.
B. Row's dominant strategy is Up.
C. Row's dominant strategy is Down.

C. CORRECT. Row gets a higher payoff from Down regardless of what Column does: -8 compared to -10, and 0 compared to -10.

One way to see that very clearly is to remove Column's payoffs, which are distracting here. This is one case where decision theory does Column Left Right Up -10 -1 Row Down -8 0

Return to Self Test 1.
Send comments to Prof. Rasmusen. Last updated: October 30, 1996