A strategy that is better than any alternative strategy-regardless of what the other firm does-is called a
A) dominant strategy.
B) simultaneous strategy.
C) positive-sum strategy.
D) one-time strategy.

Question

Quizplus · Accepted Answer

A dominant strategy is a choice that is optimal regardless of what the other firm does. This makes it the best strategy to choose, as the outcome will always be better than any alternative strategy. In contrast, a simultaneous strategy requires both firms to make a choice at the same time, without knowing what the other will choose, and a positive-sum strategy involves both firms benefiting from the outcome. A one-time strategy is not a recognized term in game theory.

A Strategy That Is Better Than Any Alternative Strategy-Regardless of What