A Game in Which Each Player Adopts Its Dominant Strategy

question 61

Multiple Choice

A game in which each player adopts its dominant strategy

• A)will not lead to an equilibrium.
• B)must be a cooperative game.
• C)could result in a Nash equilibrium.
• D)can never result in a Nash equilibrium.

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Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium for a good or a service is not achieved or is not achievable.

Monopoly Pricing

The pricing strategies employed by a monopoly, characterized by the ability to set prices higher due to lack of competition.

Colluding

Coordinating actions or decisions secretly, especially between competitors in order to cheat or deceive others.

Industry

A category of business activity that produces goods or provides services, categorized by their focus and processes.