A game has two players and each has two strategies.The strategies are Be Nice and Be Mean.If both players play Be Nice, both get a payoff of 5.If both players play Be Mean, both get a payoff of 23.If one player plays Be Nice and the other plays Be Mean, the player who played Be Nice gets 0 and the player who played Be Mean gets 10.Playing Be Mean is a dominant strategy for both players.

Question

Quizplus · Accepted Answer

Given the payoffs, if both players play Be Mean, they each get a payoff of 23, which is less than the payoff of 5 they would receive if both played Be Nice. Therefore, Be Mean cannot be a dominant strategy for both players since a dominant strategy must be the best response to all possible strategies of the other player, and here, mutual cooperation (both playing Be Nice) yields a better outcome for both.

A Game Has Two Players and Each Has Two Strategies