Lecture 3

Question 1

what is an undominated strategy?

Answer 1

if a strategy is not weakly dominated by another

Question 2

If each player has a dominant strategy, than the game is said to have a ?

Answer 2

dominant strategy solution (dss)

Question 3

Does iterated deletion always lead to an outcome that is pareto optimal?

Answer 3

no

Question 4

What are some advantages of IEDS?

Answer 4

simplicity and plausibility of assumption that whenever player has strategy that is weakly dominated, he will prefer not to choose that strategy

Question 5

What are some disadvantages of IEDS?

Answer 5

1. Layers of rationality
2. Order of elimination matters
3. Nonexistence

Question 6

What is STRICT IEDS?

Answer 6

Same as normal IEDS except domination is strict instead of weakly. This eliminates the issue of order of elimination

Question 7

What is the idea behind strict IEDS?

Answer 7

We can eliminate outcomes that should not be played by players who share a common knowledge of rationality

Question 8

the set of strategy profiles that survive the process of STRICT IEDS is called

Answer 8

the set of rationalizable strategies