The normal-form game box below outlines a generic game for two players to illustrate basic principles. Each player has two strategies (top and bottom for player 1 and left and right for player 2). The letters in the boxes represent the payoffs based on the combination of strategies chosen, so if the choices are (bottom, left), player 1 receives a payoff of e and player 2 receives a payoff of f. Player 2 Game Matrix Left Right Top a, b Player 1 Bottom e, f c, d g.h 2nd attempt Part 1 (1 point) If (top, left) is a dominant strategy equilibrium, which of the following must be true? Choose one or more: A. h>t B. g>c C. b> d D. c> g E. a> e F. f>h Which of the following statements is true? Choose one or more: A. No Nash equilibrium is also a dominant strategy equilibrium. B. No dominant strategy equilibrium is also a Nash equilibrium. C. Every dominant strategy equilibrium is also a Nash equilibrium. D. Every Nash equilibrium is also a dominant strategy equilibrium. See Hint

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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The normal-form game box below outlines a generic game for two players to illustrate basic principles. Each player has two strategies (top and bottom
for player 1 and left and right for player 2). The letters in the boxes represent the payoffs based on the combination of strategies chosen, so if the
choices are (bottom, left), player 1 receives a payoff of e and player 2 receives a payoff of f.
Player 2
Game Matrix
Left
Right
Top
a, b
Player 1
Bottom
e, f
c, d
g.h
2nd attempt
Part 1 (1 point)
If (top, left) is a dominant strategy equilibrium, which of the following must be true?
Choose one or more:
A. h>t
B. g>c
C. b> d
D. c> g
E. a> e
F. f>h
Which of the following statements is true?
Choose one or more:
A. No Nash equilibrium is also a dominant strategy equilibrium.
B. No dominant strategy equilibrium is also a Nash equilibrium.
C. Every dominant strategy equilibrium is also a Nash equilibrium.
D. Every Nash equilibrium is also a dominant strategy equilibrium.
See Hint
Transcribed Image Text:The normal-form game box below outlines a generic game for two players to illustrate basic principles. Each player has two strategies (top and bottom for player 1 and left and right for player 2). The letters in the boxes represent the payoffs based on the combination of strategies chosen, so if the choices are (bottom, left), player 1 receives a payoff of e and player 2 receives a payoff of f. Player 2 Game Matrix Left Right Top a, b Player 1 Bottom e, f c, d g.h 2nd attempt Part 1 (1 point) If (top, left) is a dominant strategy equilibrium, which of the following must be true? Choose one or more: A. h>t B. g>c C. b> d D. c> g E. a> e F. f>h Which of the following statements is true? Choose one or more: A. No Nash equilibrium is also a dominant strategy equilibrium. B. No dominant strategy equilibrium is also a Nash equilibrium. C. Every dominant strategy equilibrium is also a Nash equilibrium. D. Every Nash equilibrium is also a dominant strategy equilibrium. See Hint
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