A Strategy Is Weakly Dominated If

question 5

Multiple Choice

A strategy is weakly dominated if

• A) There are no other strategies that yield higher payoffs, regardless of others' choices
• B) There is some other strategy that yields a strictly higher payoff regardless of others' choices
• C) There is some other strategy that yields a strictly higher payoff in some circumstances and that never yields a lower payoff regardless of others' choices
• D) There is some other strategy that yields a strictly higher payoff in some circumstances and may yield a lower payoff, depending upon other players' choices

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Definitions:

Inflation Rate

The progression speed at which the cost of general goods and services increases, diminishing buying power over time.

Consumer Price Index

A metric tracking the average evolution over time in the expenditure of urban consumers on a designated selection of consumer goods and services.

Base Year

A specific year against which economic variables are measured and compared in indices or other economic calculations.

Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, changing over time to reflect the cost of living.