Consider the Following Game: Two Players Must Choose One of Three

question 17

Essay

Consider the following game: Two players must choose one of three options: rock, paper, or scissors. The winner is determined as follows: Paper slaps rock (and wins); rock crushes scissors (and wins); scissors cuts paper (and wins). If both players choose the same option, it results in a draw. Does the game have a dominant strategy? Does it have an optimal pure strategy?

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Definitions:

Average Tax Rate

The percentage of total income that is paid as tax, calculated by dividing the total tax amount by the total income.

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed; refers to the percentage of tax applied to the last dollar earned.

Tax Base

The total amount of assets or income that can be taxed by a government, providing a source of revenue.