Scenario: The following payoff matrix represents a simultaneous-move game between two players: Kay and Jack. Each player has two choices: Black or White. The first number in each cell is the payoff to Kay, and the second number is the payoff to Jack.

-Refer to the scenario above.Which is true?
A) This game has one Nash equilibrium.
B) This game has two Nash equilibria.
C) This game has a dominant strategy equilibrium.
D) This game has two dominant strategy equilibria.

Question

Scenario: The following payoff matrix represents a simultaneous-move game between two players: Kay and Jack. Each player has two choices: Black or White. The first number in each cell is the payoff to Kay, and the second number is the payoff to Jack.
 
-Refer to the scenario above.Which is true?
A) This game has one Nash equilibrium. 
B) This game has two Nash equilibria. 
C) This game has a dominant strategy equilibrium. 
D) This game has two dominant strategy equilibria.

Quizplus · Accepted Answer

To find Nash equilibria, we look for cells where both players have chosen their best response. In this case, we can see that both players would choose "Black" in the bottom left cell, and both would choose "White" in the top right cell. Therefore, there are two Nash equilibria in this game. Note that there are no dominant strategies, as neither player has a clear best option regardless of what the other player chooses.

Scenario: the Following Payoff Matrix Represents a Simultaneous-Move Game Between