Games in which players find that playing their dominant strategies results in a lower payoff than playing their dominated strategies is called
A) a Nash equilibrium.
B) disequilibrium.
C) a prisoner's dilemma.
D) an ultimatum equilibrium.
E) an unfair game.

Question

Quizplus · Accepted Answer

This situation is known as a prisoner's dilemma. It occurs when both players have dominant strategies that result in a worse overall outcome than if they both played their dominated strategies. This is because the players are incentivized to act in their own self-interest, leading to a suboptimal outcome for both.

Games in Which Players Find That Playing Their Dominant Strategies