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In game theory, a dominant strategy is one where regardless of what the other player does, you always have a larger payoff. In probability a dominant strategy is the one with the higher likelihood.
So lastly I want to think about the prisoners dilemma game, and I want to argue to you that the players have a dominant strategy in this game, so I want to claim to you that player 1 has the dominant strategy of playing D, and I'm going to do this by a case analysis. So let's begin by consdiering the case where player 2 plays C If player 2 plays c, then player 1 is really thinking about this.
If you eliminate weakly dominated strategies from a game, an equilibrium in that simplified game will be an equilibrium in the original game as well. However, this process may delete other equilibria from the game. Unfortunately, there is no way of knowing whether you have removed any equilibria, so you must go back to the original game and.
Confessing is a dominant strategy for Johnny as well. A game in which there is a dominant strategy for each player is called a dominant strategy equilibrium. Here, the dominant strategy equilibrium is for both prisoners to confess; the payoff will be given by cell A in the payoff matrix.
Applying the Prisoner's Dilemma to Business Decisions. Game theory examples revolve around the pay-offs that come from making different decisions.; In the prisoner's dilemma the reward to defecting is greater than mutual cooperation which itself brings a higher reward than mutual defection which itself is better than the sucker's pay-off.; Critically, the reward for two players cooperating.
Game Theory Lecture Notes By Y. Narahari Department of Computer Science and Automation Indian Institute of Science Bangalore, India July 2012 Chapter 4: Dominant Strategy Equilibria.
Dominant Strategy. View FREE Lessons! Definition of Dominant Strategy: Dominant strategy is a term used in game theory to describe a decision that always leads to the best payoff for a player, no matter what the other players do.A rational player will always play his dominant strategy. Detailed Explanation.