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

                                     Left            Right
                   Up               10,3              1,1
                   Down             2,2              3,10
4_3 Which of the following are Nash equilibria?
A. Up, Left
B. Up, Right
C. Down, Left
D. Down, Right

A. CORRECT. Neither player could gain by deviating. Row would fall from 10 to 2, and Column would fall from 3 to 1.

There is another equilibrium, too, though, so keep looking. If there is a dominant strategy equilbrium, it is unique, but that is not true of Nash equilibria.

Return to Self Test 1.

Send comments to Prof. Rasmusen. Last updated: October 30, 1996