A dominated strategy
A)exists when one firm is weaker than another.
B)only occurs in a mixed strategy scenario.
C)is one that is never used by a rational actor.
D)is a characteristic of games with multiple Nash equilibria.

Question

Quizplus · Accepted Answer

A dominated strategy is one that is never used by a rational actor because it always leads to a worse outcome compared to choosing another strategy. Therefore, it is always in the player's best interest to choose a non-dominated strategy. Options A, B, and D are incorrect as they do not correctly describe a dominated strategy.

A Dominated Strategy