Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 13, Problem 1Q
To determine
Meaning of dominant-strategy equilibrium.
Expert Solution & Answer
Explanation of Solution
Dominant strategy refers to a player choosing the same alternative regardless of what the other player chooses.
Dominant strategy equilibrium occurs when all the players in a game choose to act on a dominant strategy.
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What is meant by dominant strategy?
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Chapter 13 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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Similar questions
- Can a strategy be dominant for one player in a Nash equilibriumarrow_forwardWhat is the difference between a cooperative and a noncooperative game? Give an example of each.arrow_forwardUse the following normal-form game to answer the following questions. a. For what values of x is strategy D (strictly) dominant for player 2? b. For what values of x is strategy B (strictly) dominant for player 1? c. For what values of x is (B, D) the only Nash equilibrium of the game?arrow_forward
- Provide an example of a matrix game for which there is a weakly dominant strategy equilibrium, as well as another Nash equilibrium. You can make a natrix in word and copy-paste that in the box given for answer. Alternatively, you can write the matrix in the box.arrow_forwardFill in the chart attached and answer the following questions: a) Bert's dominant strategy is to: (pick the correct answer below ) - no dominant strategy - fish for 20 hours per week -fish for 40 hours per week. b) Ernie's dominant strategy is to: ( pick the correct answer below) - no dominant strategy - fish for 20 hours per week -fish for 40 hours per week. c) Is there a Nash Equilibrium? ( pick the correct answer below) - No - Yes, both fish for 20 hours per week - Yes, one fisher for 40 and the other for 20. - Yes both fish for 30 hours per week. d) Is there an incentive for Bert and Ernie to collude? Why or why not?arrow_forwardThe following is a static game: Convert this game into dynamic form game. Find the Nash equilibrium and subgame perfect Nash equilibrium of this game. If you consider this game as dynamic then what kind of dynamic game is this.arrow_forward
- Explain the meaning of a Nash Equilibrium. How does it differ from and equilibrium in dominant strategies?arrow_forwardHow expected Nash Equilibrium would be achieved in case of game with no Nash Equilibrium?arrow_forwardConsider the following dynamic game: Find the subgame perfect Nash Equilibrium Identify the non-credible threat equilibriumarrow_forward
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