The following payoff matrix represents a simultaneous-move game between two players: Alec and Ben. Each player has to choices: Red and Yellow. The first number in each cell is the payoff to Alec, and the second number is the payoff to Ben.

-Refer to the table above.Which statement is true?
A) Alec and Ben both choosing Red is the dominant strategy equilibrium of this game.
B) Alec and Ben both choosing Yellow is the dominant strategy equilibrium of this game.
C) Alec choosing Red and Ben choosing Yellow is the dominant strategy equilibrium of this game.
D) There is no dominant strategy equilibrium in this game.

Question

The following payoff matrix represents a simultaneous-move game between two players: Alec and Ben. Each player has to choices: Red and Yellow. The first number in each cell is the payoff to Alec, and the second number is the payoff to Ben.
 
-Refer to the table above.Which statement is true?
A) Alec and Ben both choosing Red is the dominant strategy equilibrium of this game. 
B) Alec and Ben both choosing Yellow is the dominant strategy equilibrium of this game. 
C) Alec choosing Red and Ben choosing Yellow is the dominant strategy equilibrium of this game. 
D) There is no dominant strategy equilibrium in this game.

Quizplus · Accepted Answer

Alec and Ben both choosing Red is the dominant strategy equilibrium of this game because it is the best strategy for each player, regardless of what the other player chooses.

The Following Payoff Matrix Represents a Simultaneous-Move Game Between Two