Suppose a player has a dominant strategy. Would she choose to play a mixed strategy (such as playing two strategies with probability 50-50)? Why or why not?
What will be an ideal response?
A dominant strategy is one best response to every possible strategy of the other player. A game with mixed strategies implies that the best action is to not choose any particular strategy. This means that, in a game with mixed strategies, neither player has a dominant strategy.
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The above table shows the market shares for all the landscaping services in a suburban area. The four-firm concentration ratio equals
A) 30 percent. B) 60 percent. C) 65 percent. D) 100 percent.
According to Nobel laureate Ronald Coase, firms exist in order to
A) maximize transactions costs. B) minimize transactions costs. C) maximize transactions. D) employ workers.
Refer to Table 11.1. What is the value of net exports or the trade balance?
A) $300. B) -$300. C) $1,700. D) -$1,700.
A monopolized market is characterized by:
a. a sole seller of a product for which there are few suitable substitutes. b. very strong barriers to entry. c. a single firm facing the market demand curve. d. all of these.