For each of the following statements. please indicate whether they are TRUE or F
ID: 1249747 • Letter: F
Question
For each of the following statements. please indicate whether they are TRUE or FALSE. No credit will be given without an explanation as to why your claim is correct. A dominant strategy equilibrium must be a Nash equilibrium If a game has a dominant strategy equilibrium, this equilibrium must be Pareto efficient. Every game has a pure strategy Nash equilibrium. Repeated interaction can always solve the prisoner's dilemma since firm have greater incentives to cooperate. In a noncooperative Nash equilibrium, a rational player cannot make himself better off by deviating from his strategy.Explanation / Answer
But not all have pure strategy Nash equilibria.
For an example of a game that does not have a pure Nash equilibrium is seen in matching pennies.
The games that have pure Nash equilibria are the Prisoner's dilemma, the Stag hunt and the Coordination game.
d)
False:
A prisoner’s dilemma has one Nash equilibrium. But based on the repetitions it will change
Repeated outcomes will give a cooperative outcome only in the case of infinitely repeated games. If the game has n number of finite repetitions than the out come is again non cooperative.
e)
True:
In a non cooperative Nash equilibrium will exist, when a player takes his best strategy by considering his opponent strategy, so here he dosent have any alternative of giving him a better payoff. It is the optimal strategy availabe considering the opponent strategy.
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