« previous next »

Author Question: Comment on the following statement: If one player in the game does not have a dominant strategy, it ... (Read 122 times)

viki

  • Hero Member
  • *****
  • Posts: 525
on: Jun 29, 2018
Comment on the following statement: If one player in the game does not have a dominant strategy, it is impossible to predict the outcome of the game.
 
  What will be an ideal response?

Question 2

Explain the principle of the second best.
 
  What will be an ideal response?


Pariscourtney

  • Sr. Member
  • ****
  • Posts: 352
Reply #1 on: Jun 29, 2018
Answer to Question 1

The statement is false. If one player has a dominant strategy and the other player knows it, then the outcome is predictable. For example, if player A will go right when player B moves left and vice versa, we can predict what player A will do if player B has a dominant strategy. If player B's dominant strategy is to move right, then we know that player A will move left.

Answer to Question 2

The principle of second best rests on the fact that just because a tax distorts an economic decision does not always imply that such a tax imposes an excess burden. If previously existing distortions exist, such a tax may actually improve efficiency.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

Aspirin is the most widely used drug in the world. It has even been recognized as such by the Guinness Book of World Records.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Tropical grassland of the Masai Mara Game Reserve in Kenya Tropical grassland of the Masai Mara Game Reserve in Kenya
Dominant piebald spotting Dominant piebald spotting
Example of a patient statement. Example of a patient statement.
The Distribution of Dominant and Minority Groups The Distribution of Dominant and Minority Groups
Exekias (Potter And Painter) AJAX AND ACHILLES PLAYING A GAME Exekias (Potter And Painter) AJAX AND ACHILLES PLAYING A GAME
Autosomal dominant inheritance Autosomal dominant inheritance
Video: Phases of an Action Potential - Resting Potential, Threshold, Rising, Falling, & Recovery Phases

For a complete list of videos, visit our video library