In game theory, a dominant strategy is one
A)In which the firm gains the greatest competitive advantage
B)In which the same strategy is chosen by one firm regardless of the anticipated action
C)of the other firm
D)That produces the greatest comparative advantage
E)That both firms agree on independently

Question

Quizplus · Accepted Answer

A dominant strategy is one that is the best choice for a player regardless of the actions taken by the other players. Therefore, the same strategy is chosen by one firm regardless of what the other firm chooses. Option B correctly describes this concept. The other options are unrelated or incorrect.

In Game Theory, a Dominant Strategy Is One