For the following, please answer "True" or "False" and explain why.
Playing dominant strategy doesnt yield Nash equilibrium. The best outcome of each player depends on the best response of the other one.
Nash equilibrium occurs when both players defect. The best solution is to defect and other player to coperate. But this is not a Nash Equilibrium.
In this situation there a two Nash Equilibria.
In each situation player A and Player B doing the opposite strategy of one another. It is not easy to analyse which equilibrium situation is achieved without the cooperative moves from players.
If both players have no dominant strategy, still they have
strategy that can attain nash equilibrium. When both firms played
the same strategy without cooperation, a Nash equilibrium can
Any dominant strategy can always be nash equilibrium but not all nash equilibria are dominant strategy.
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