The Relationship Between a Pure-Strategy Nash Equilibrium and a Dominant-Strategy

question 55

Multiple Choice

The relationship between a pure-strategy Nash equilibrium and a dominant-strategy equilibrium is that:

• A) a dominant-strategy equilibrium is a special case of a pure-strategy Nash equilibrium.
• B) a pure-strategy Nash equilibrium is a special case of a dominant-strategy equilibrium.
• C) they are the same.
• D) there may not be a dominant-strategy equilibrium, but there always is a pure-strategy Nash equilibrium.
• E) they are mutually exclusive and exhaustive, in that a dominant-strategy equilibrium is the same thing as a mixed-strategy Nash equilibrium.

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Definitions:

Budget Constraint

The limitations on the consumption choices of an individual or organization due to limited resources or income.

DVD

A digital versatile disc used for storing large amounts of data, including video and audio, in a digital format.

CD

A compact disc used for storing data, including music and software, now largely overtaken by digital storage solutions.

Budget Constraint

The limitations on the spending behavior of consumers based on the income they have available to spend and the prices of goods and services.