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 of the other firm.
C)that produces the greatest comparative advantage.
D)that both firms agree on independently.

Question

Quizplus · Accepted Answer

A dominant strategy is a strategy that yields the highest payoff for a player regardless of the actions of the other players. In other words, it is the best strategy for a player to choose regardless of what the other player chooses. Option B correctly defines a dominant strategy as one where a player chooses the same strategy regardless of the other player's move.

In Game Theory, a Dominant Strategy Is One