A player has a dominant strategy when ________.
A) her chosen strategy gives her a lower payoff than the other player
B) her chosen strategy matches the best response of the other player in the game
C) she has many best responses to any strategy of the other player in the game
D) she has only one best response to every possible strategy of the other player

Question

Quizplus · Accepted Answer

A player has a dominant strategy when she has only one best response to every possible strategy of the other player. This means that regardless of what the other player chooses, the player with the dominant strategy will always have a preferred choice that gives her the highest payoff. Choice A is incorrect because a dominant strategy should give the player a higher payoff than any other strategy, not a lower one. Choice B is incorrect because matching the best response of the other player is a Nash equilibrium, but not necessarily a dominant strategy. Choice C is incorrect because having many best responses means that there is no dominant strategy.

A Player Has a Dominant Strategy When ________