Column Left Right Up -10,0 -1,-1 Row Down -8,-8 0,-102_3 The dominant-strategy equilibrium is :

A. Up, Left

B. Up, Right

C. Down, Left

D. Down, Right

A. TRY AGAIN. Right is dominated, because Column gets a payoff of -1 from it if Row goes Up, compared with a payoff of 0 from Left; and a payoff of -10 from it if Row goes Down, compared with a payoff of -8 from Left. Thus, this cannot be a dominant strategy equilibrium.

Return to Self Test 1.

Send comments to Prof. Rasmusen. Last updated: January 18, 1997.