A game has two players. Each player has two possible strategies. One strategy is Cooperate, the other is Defect. Each player writes on a piece of paper either a C for cooperate or a D for defect. If both players write C, they each get a payoff of $100. If both players write D, they each get a payoff of 0. If one player writes C and the other player writes D, the cooperating player gets a payoff of S and the defecting player gets a payoff of T. To defect will be a dominant strategy for both players if A) S + T 100. B) T 2S. C) S 100. D) S 100. E) S and T are any positive numbers.

Question

A game has two players. Each player has two possible strategies. One strategy is Cooperate, the other is Defect. Each player writes on a piece of paper either a C for cooperate or a D for defect. If both players write C, they each get a payoff of $100. If both players write D, they each get a payoff of 0. If one player writes C and the other player writes D, the cooperating player gets a payoff of S and the defecting player gets a payoff of T. To defect will be a dominant strategy for both players if A) S + T > 100. B) T > 2S. C) S < 0 and T > 100. D) S < T and T > 100. E) S and T are any positive numbers.

Quizplus · Accepted Answer

For defecting to be a dominant strategy, the payoff for defecting (T) must be greater than the payoff for cooperating (100) when the other player cooperates, and the payoff for defecting (0) must be greater than the payoff for cooperating (S) when the other player defects. This is satisfied when S < 0 and T > 100.

A Game Has Two Players