Question

Suppose Hubert and Kate 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 Hubert chooses Right and Kate chooses Right, Hubert will receive a payoff of 5 and Kate will receive a payoff of 3.

Kata
Left Right
Hurbert Left 8,4 4,5
Right 5,4 6,4
The only dominant strategy in this game is___for____choose The outcome reflecting the unique Nash equilibrium in this game is as follows: Hubert chooses_____and Kate chooses_____.

Answer 1

Best response for Kate

If Hubert chooses left, Kate would have to choose Right so that Kate can make a payoff of 5.

If Hubert chooses right, Kate would still choose right to make a payoff of 5.

Best response for Hubert

If Kate chooses left, Hubert would choose Left to get a payoff of 8.

If Kate chooses right, Darnell would choose right so as to make a payoff of 6.

The dominant strategy is the one that a player can pick regardless of the action of the other play.

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

Kate will choose right regardless of what Hubert does because it will give the higher payoff. This is the dominant strategy.

The outcome reflecting the unique Nash equilibrium in this game is as follows: Hubert chooses right and Kate chooses right.

Kate will always choose right which would prompt Hubert to pick right as wel as as to make a payoff of 6.