What is a dominant strategy?
A) the strategy that results from collusion in an industry
B) the strategy that results in the best outcome for all firms in an industry
C) the optimal strategy that takes into account the actions of opponents
D) the strategy that is optimal regardless of the actions of other firms

Question

Quizplus · Accepted Answer

A dominant strategy is the best course of action for a player regardless of the strategies chosen by other players. It is a strategy that is always optimal for a player, no matter what the other players do. Therefore, the best choice is option D, which states that the dominant strategy is optimal regardless of the actions of other firms.

What Is a Dominant Strategy