-Refer to Figure 2.3, which represents a noncooperative, one-time, static game. If larger payoffs are preferred, which firm has a strictly dominant strategy?
A) Firm A
B) Firm B
C) Both firms
D) Neither firm

Question

-Refer to Figure 2.3, which represents a noncooperative, one-time, static game. If larger payoffs are preferred, which firm has a strictly dominant strategy?
A) Firm A 
B) Firm B 
C) Both firms 
D) Neither firm

Quizplus · Accepted Answer

Both firms have a strictly dominant strategy because they both have a strategy that gives them a higher payoff regardless of what the other firm does.