A Strategy Is Dominant If

question 4

Multiple Choice

A strategy is dominant if

• A) it yields a greater payoff than any other player receives.
• B) it yields a payoff at least as large as that from any other strategy, regardless of the actions of other players.
• C) the player cannot gain by changing strategy, assuming that no other player changes strategy.
• D) it is part of a Nash equilibrium.

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Definitions:

Permanently Disabled

A condition where an individual is unable to engage in any substantial gainful activity due to a physical or mental impairment that can be expected to result in death or has lasted or can be expected to last for a continuous period of not less than 12 months.

Guaranteed Insurability

An optional provision in an insurance contract that allows the insured to pay an extra premium initially in exchange for a guaranteed option to buy more insurance at certain specified times later on with no questions asked and no medical examination required.

Premiums

Payments made for insurance coverage, often periodically, to keep the insurance policy active and the insured protected against specified risks.

Insurable Interest

The financial interest that a policyholder has in the person or property that is insured.