7. Solving for dominant strategles and the Nash equilibrium Suppose Clancy and E

Question

7. Solving for dominant strategles and the Nash equilibrium Suppose Clancy and Eileen are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Clancy chooses Right and Eileen chooses Right, Clancy will receive a payoff of 9 and Eileen will receive a payoff of 5 Eileen Right Left 6,68,5 3,6 Left Clancy Right 9,5 The only dominant strategy in this game is for to choose The outcome reflecting the unique Nash equilibrium in this game is as follows: Clancy chooses and Eileen chooses

Explanation / Answer

The only dominant strategy in this game is for both to choose Left.

This is because given the action of Clancy, Eileen is better off choosing Left similarly given any action of Eileen, Clancy is better off choosing Left.

The outcome reflecting the unique Nash equilibrium in this game is as follows: Clancy chooses Left and Eileen chooses Left.

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