Consider the symmetric game above. a. Identify any strategies that are strictly
ID: 3009528 • Letter: C
Question
Consider the symmetric game above.
a. Identify any strategies that are strictly dominated.
b. Eliminate the strictly dominated strategies and illustrate the resulting 2x2 game that remains.
This is known as the residual game.
c. Does the 2x2 game have any strictly dominated strategies? If so, eliminate them. What
strategies remain?
Note that solving a game in this manner is called iterated elimination of strictly dominated
strategies. It applies to all games and not just to symmetric ones. The process used here is a
precursor to the algorithm that we use to find mixed strategies in games. A game that can be
uniquely solved by this process is called dominance solvable.
Explanation / Answer
Answer:
a)
There are three main concepts to solve strategic games:
1. Dominant Strategies & Dominant Strategy Equilibrium
2. Dominated Strategies & Iterative Elimination of Dominated Strategies
3. Nash Equilibrium
Dominant Strategies
• A strategy is a dominant strategy for a player if it yields the best payoff (for that player) no matter what strategies the other players choose.
• If all players have a dominant strategy, then it is natural for them to choose the dominant strategies and we reach a dominant strategy equilibrium
a)
A is dominated for B --------> Eliminate
B is dominated for C --------> Eliminate
B is dominated for A --------> Eliminate
C and A survives