Solving for dominant strategies and the Nash equilibrium Suppose Felix and Janet

Question

Solving for dominant strategies and the Nash equilibrium Suppose Felix and Janet 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 Felix chooses Right and Janet chooses Right, Felix will receive a payoff of 7 and Janet will receive a payoff of 4. The only dominant strategy in this game is for___to choose___. The outcome reflecting the unique Nash equilibrium in this game is as follows: Felix chooses___and Janet chooses___.

Explanation / Answer

When Felix choses Left, Janet will chose Right

When Felix choses Right, Janet will chose Right

When Janet choses Left, Felix will chose Left

When Janet choses Right, Felix will chose Right

Thus, Janet has dominant strategy to choose Right while Felix has no dominant strategy.

Thus,

The only dominant strategy in this game is for Janet to choose right.

The outcome reflecting the unique Nash equilibrium in this game is: Felix chooses right and Janet chooses right.

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