Mr.Smith wants to go on a vacation with his wife.Mrs.Smith wants to go to a beach.He,however,wants to go trekking in the hills.The payoff matrix given below shows the units of satisfaction derived in each situation.The first number listed in each cell is the payoff to Mr.Smith,and the second number listed is the payoff to Mrs.Smith.

This game has ________.
A) multiple dominant strategy equilibria
B) multiple Nash equilibria
C) only one Nash equilibrium
D) only one dominant strategy equilibrium

Question

Mr.Smith wants to go on a vacation with his wife.Mrs.Smith wants to go to a beach.He,however,wants to go trekking in the hills.The payoff matrix given below shows the units of satisfaction derived in each situation.The first number listed in each cell is the payoff to Mr.Smith,and the second number listed is the payoff to Mrs.Smith.

This game has ________.

This game has ________.
A) multiple dominant strategy equilibria 
B) multiple Nash equilibria 
C) only one Nash equilibrium 
D) only one dominant strategy equilibrium

Quizplus · Accepted Answer

This game has multiple Nash equilibria as both players have a dominant strategy. Mr.Smith always prefers trekking regardless of what Mrs.Smith chooses, and Mrs.Smith always prefers the beach regardless of what Mr.Smith chooses. Therefore, the Nash equilibria are (Trekking, Beach) and (Beach, Trekking). Both choices result in a payoff of (3,2) for Mrs.Smith and a payoff of (2,3) for Mr.Smith.

MrSmith Wants to Go on a Vacation with His Wife