Reference no: EM132593155

1) Carefully explain the difference between a strategy (call it X) being strictly dominant over another strategy (call it Y), and a strategy being strictly dominated by another strategy. Also explain how weak dominance differs from strict dominance.

2) Using your own words, explain how the concept of elimination of dominated strategies works.

3) Indicate whether the following statement is TRUE or FALSE and explain your answer: All games can be solved by elimination of dominated strategies.

4) MULTIPLE CHOICE (identify the one best answer below and explain your reasoning for each option): Suppose that if Joe plays action A, then Helena has a payoff of 10 from playing action B, a payoff of 4 from action C, and a payoff of 10 from action D (she has no other actions available). We can then conclude that:

• C is not Helena's best response to A.
• B is Helena's best response to A.
• D is Helena's best response to A.
• All of the above.
• None of the above