Which of the following is not a characteristic of an assurance game?
A) Neither player has a dominant strategy.
B) Nash equilibria exist at every outcome where the players successfully coordinate.
C) Each of the Nash equilibria offers identical payoffs to any particular player.
D) The payoff for coordinating is higher than the payoff for not coordinating.

Question

Quizplus · Accepted Answer

In an assurance game, while Nash equilibria exist where players successfully coordinate, and the payoff for coordinating is higher than for not coordinating, the payoffs at each Nash equilibrium can differ, making option C incorrect. This is because the assurance game focuses on the coordination between players to achieve higher payoffs, but does not imply that all coordinated outcomes yield identical payoffs for the players.

Which of the Following Is Not a Characteristic of an Assurance