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Dominant Strategies

Definition

Dominant strategies refer to the best course of action for a player in a game, regardless of what other players do. It is the strategy that yields the highest payoff for a player, no matter what choices others make.

Analogy

Imagine you and your friend are playing rock-paper-scissors. If you always choose rock because it beats scissors and ties with itself, then choosing rock is your dominant strategy. It doesn't matter what your friend chooses; you will always have the best outcome.

Related terms

Nash Equilibrium: Nash equilibrium occurs when each player in a game chooses their best strategy given the strategies chosen by all other players. It represents a stable state where no player has an incentive to change their strategy.

Prisoner's Dilemma: The prisoner's dilemma is a scenario in game theory where two individuals face a choice between cooperating or betraying each other. It illustrates how rational individuals may not cooperate even if it would benefit them both.

Payoff Matrix: A payoff matrix is a table that shows the possible outcomes and payoffs for each player in a game. It helps analyze strategic interactions and determine dominant strategies or equilibriums.