Question

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.
JanetLeft RightFelix Left 2, 3 2, 4Right 3, 7 4, 6The only dominant strategy in this game is for _______ (janet, felix) to choose _____ (left, right)The outcome reflecting the unique Nash equilibrium in this game is as follows: Felix chooses ______ (left, right) and Janet chooses (left, right) .

Answer 1

Answer:

a) Felix to choose right

b) (3,7)

Explanation:

As per the data given in the question,

a) Dominant strategy is that strategy in which a player chooses strategy irrespective of the strategy which other player has already chosen.

The dominant strategy for Felix is to choose right.

b)

The outcome matching the unique Nash equilibrium in this game is :

Nash equilibrium is that in which both players will chose after keeping in mind the other players' strategy.

Here equilibrium is :

Janet chooses left(while Felix chooses right) and Felix chooses right (while Janet chooses left). the Dominant set of strategy will be (3,7).