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:

Demand Falls

A situation where there is a decrease in the quantity of a product or service that consumers are willing and able to purchase at a given price.

Equilibrium Quantity

At the market equilibrium price, the amount of goods or services offered matches the amount requested.

Supply Falls

A condition in which the quantity of a product or service available in the market decreases, potentially leading to higher prices.

Surplus

The condition that occurs when supply exceeds demand, often resulting in a decrease in prices.