A dominant strategy equilibrium occurs when
A)there is a clear strategy for each player independent of the other player's actions.
B)each player takes the best possible action given the other player's action.
C)each player complies with the collusive agreement.
D)you cooperate until the other player cheats, and then you cheat forever.
E)none of the above.

Question

Quizplus · Accepted Answer

In a dominant strategy equilibrium, each player has a dominant strategy (a clear strategy that will always yield the highest payoff for that player, regardless of the other player's strategy). This means that each player can act independently of the other player's actions, which is not the case for options B, C, and D. Option E is not a valid answer because a dominant strategy equilibrium is a specific concept in game theory.

A Dominant Strategy Equilibrium Occurs When