Topic 3

Question 1

Does order matter in iterated elimination of strictly dominated strategies ?

Answer 1

If iterated elimination of strictly dominated strategies leads to a single outcome, you will arrive at that outcome whether you eliminate strategy #1 or #2 first

Question 2

What is strategy?

Answer 2

Strategy is a complete plan of action.

In a simultaneous move game, strategy is the action taken by a player in one occasion.

Question 3

What is a strongly dominant strategy?

Answer 3

Strategy Si’ strongly dominates all other strategies of player i if the payoff to Si’ is strictly greater than the payoff of any other strategy, regardless of which strategy is chosen by other players

Question 4

What is a weakly dominant strategy?

Answer 4

Strategy Si’ weakly dominates another strategy of player C, call it Si”, if t does at least as well as Si” against every strategy of other players, and against some it does strictly better
If Si’ weakly dominates every other strategy, then it is a weakly dominant strategy

Question 5

Dominant strategy solution

Answer 5

When every player has a weakly dominant strategy, the game has a dominant strategy

Question 6

What is a weakly dominated strategy?

Answer 6

Strategy Si’ weakly dominates another strategy of player i, call it Si”, if it does at least as well as Si” against every strategy of other players and against some it does strictly better
We say that Si” is a weakly dominated strategy

Question 7

When does a game have a dominant strategy solution?

Answer 7

When every player has a weakly dominant strategy

Question 8

What is common knowledge?

Answer 8

When players share the same understanding of the entire game
Everyone knows that everyone knows the rules of the game

Question 9

What are the criticisms of iterated elimination of weakly dominated strategies?

Answer 9

1. Rationality until when?
2. Order of elimination matters
3. Solution does not always exist

Question 10

When does order not matter in iterated elimination of strictly dominated strategies?

Answer 10

If iterated elimination of strictly dominated strategies leads to a single outcome, you will arrive at the outcome whether you eliminate strategy #1 or #2 first

Question 11

Does order matter when deleting WEAKLY DOMINATED STRATEGIES?

Answer 11

Yes!!

Question 12

Does order matter when deleting STRICTLY DOMINATED STRATEGIES?

Answer 12

No!!

Question 13

Difference between strictly dominant and strictly dominates

Answer 13

Strictly dominant - ONE STRATEGY

strictly dominates - in each row