In Game Theory, Strategies Include

question 56

Multiple Choice

In game theory, strategies include

• A) all possible actions of each player.
• B) only the winning action of each player.
• C) all possible actions and payoffs of each player.
• D) the payoff matrix.

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Definitions:

Pure Strategies

In game theory, a pure strategy is an action chosen by a player where they select a specific move to follow in every possible situation within a game.

Dominant Strategy

A strategy in game theory that yields the best outcome for a player, regardless of what the other players do.

Payoff

The gain or loss that an investor or a player in a game receives as a result of a particular action or decision.

Nash Equilibrium

A concept in game theory where no player can benefit by changing their strategy if the strategies of the other players remain unchanged.