Consider the following statements about a two-person simultaneous-move game in which each person has two pure strategies : (i) If the game has a unique Nash equilibrium which is Pareto-dominated by some other strategy profile, then it is a prisoner’s dilemma game. (ii) If the game is a prisoner’s dilemma game, then it has a unique Nash equilibrium which is Pareto-dominated by some other strategy profile. Which of the following is true?
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Game theory and strategic behaviour has come up 61 times in 6 exams since 2008.
This question is on Pure-strategy Nash equilibrium, part of Game theory and strategic behaviour in Game Theory.
Outcomes from which no player wants to deviate, and classic games that illustrate them.
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Question from the JNU SSS 2013 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.