The following figure depicts four simultaneous-move games. The first element of each payoff cell is the payoff to Player A. The other element is the payoff to Player B.

-Refer to the figure above.In which one of these simultaneous-play games is the unique Nash equilibrium Player A choosing X and Player B choosing Y?
A) (1)
B) (2)
C) (3)
D) (4)

Question

The following figure depicts four simultaneous-move games. The first element of each payoff cell is the payoff to Player A. The other element is the payoff to Player B.
 
-Refer to the figure above.In which one of these simultaneous-play games is the unique Nash equilibrium Player A choosing X and Player B choosing Y?
A) (1) 
B) (2) 
C) (3) 
D) (4)

Quizplus · Accepted Answer

In game (2), both players have a dominant strategy. Player A's dominant strategy is to choose X, regardless of what Player B chooses, and Player B's dominant strategy is to choose Y, regardless of what Player A chooses. Therefore, the unique Nash equilibrium is for Player A to choose X and Player B to choose Y. In the other games, there is no dominant strategy for either player, and there are multiple Nash equilibria.

The Following Figure Depicts Four Simultaneous-Move Games