A key difference between the stag-hunt game and the battle-of-the-sexes game is that:
A) the stag-hunt game has one payoff-dominant equilibrium and one risk-dominant equilibrium; the battle-of-the-sexes game has two equilibria, none of which is either payoff or risk-dominant.
B) the battle-of-the-sexes game has one payoff-dominant equilibrium and one risk-dominant equilibrium; the stag-hunt game has two equilibria, none of which are either payoff or risk-dominant.
C) the battle-of-the-sexes game has one dominant strategy Nash equilibrium; the stag-hunt game has two equilibria, none of which are either payoff or risk-dominant.
D) the battle-of-the-sexes game has one payoff-dominant equilibrium and one risk-dominant equilibrium; the stag-hunt game has one dominant strategy Nash equilibrium.

Question

Quizplus · Accepted Answer

The stag-hunt game is characterized by one payoff-dominant equilibrium (where both players cooperate for the highest payoff) and one risk-dominant equilibrium (where the fear of the other player defecting leads both to choose a safer, lower payoff). The battle-of-the-sexes game, on the other hand, has two equilibria based on the preferences of the players, but neither is considered payoff-dominant or risk-dominant in the same sense as in the stag-hunt game.

A Key Difference Between the Stag-Hunt Game and the Battle-Of-The-Sexes