Finding Best Responses by Underlining Payoffs

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Presentation transcript:

Finding Best Responses by Underlining Payoffs To find the best responses for the row player (Anil), look at each of the column player’s actions and find what the best action for row player is for each of them. To find the best responses for the column player (Bala), look at each of the row player’s actions and find what the best action for column player is for each of them. We learn Anil has a dominant strategy of cassava and Bala has a dominant strategy of rice. Why do we call these dominant strategies for Anil and Bala.

Prisoners’ Dilemma To find the best responses for the row player (Anil), look at each of the column player’s actions and find what the best action for row player is for each of them. To find the best responses for the column player (Bala), look at each of the row player’s actions and find what the best action for column player is for each of them. We see that the dominant strategy equilibrium is for both Anil and Bala to use Terminator. This is not the socially optimal outcome.