Author Question: Comment on the following statement: If one player in the game does not have a dominant strategy, it ... (Read 102 times)

viki

  • Hero Member
  • *****
  • Posts: 525
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
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
 

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

For a complete list of videos, visit our video library