The equilibrium in a game in which all players use their dominant strategies is known as a
A) Nash equilibrium
B) dominant-strategy equilibrium
C) dominated-strategy equilibrium

Question

Quizplus · Accepted Answer

When all players use their dominant strategies, it results in a dominant-strategy equilibrium. This occurs when each player's dominant strategy is also their best response to the strategies of the other players. A Nash equilibrium, on the other hand, occurs when each player's strategy is a best response to the strategies of the other players, but these strategies may not necessarily be dominant. A dominated-strategy equilibrium, as the name suggests, is a situation where each player is playing a dominated strategy, which is never a best response to the strategies of the other players.

The Equilibrium in a Game in Which All Players Use