Question

Determine what the dominant strategy is for each player in each game below:

a. ​​​​​​

		Bonnie’s Decision
		Confess	Remain Silent
Clyde’s Decision	Confess	Bonnie gets 8 years Clyde gets 8 years	Bonnie gets 20 years Clyde goes free
	Remain Silent	Bonnie goes free Clyde gets 20 years	Bonnie gets 1 year Clyde gets 1 year

b.

		Jack’s Decision
		High Production	Low Production
Jill’s Decision	High Production	$1,600 profit for Jack $1,600 profit for Jill	$1,500 profit for Jack $2,000 profit for Jill
	Low Production	$2,000 profit for Jack $1,500 profit for Jill	$1,800 profit for Jack $1,800 profit for Jill

c.

		Decision of United States (U.S.)
		Arm	Disarm
Decision of Soviet Union (USSR)	Arm	U.S. at risk USSR at risk	U.S. at risk and weak USSR safe and powerful
	Disarm	U.S. safe and powerful USSR at risk and weak	U.S. safe USSR safe

Answer 1

a. Given that Clyde confess, Bonnie's best response is to confess(Get 8 years).
Given that Clyde remain silent, Bonnie's best response is to confess(Goes free).
Given that Bonnie confess, Clyde's best response is to confess(Get 8 years).
Given that Bonnie confess, Clyde's best response is to confess(Get 8 years).
The dominant strategy for both players is to confess as it is always their best response.

b. Given that Jill chose high production, Jack's best response is high production($1600).
Given that Jill chose low production, Jack's best response is high production($2000).
Given that Jack chose high production, Jill's best response is high production($1600).
Given that Jack chose low production, Jill's best response is high production($2000).
The dominant strategy for both players is to choose high production as it is always their best response.

c. Given that USSR choose arm, US's best response is arm.
Given that USSR choose disarm, US's best response is arm.
Given that US choose arm, USSR's best response is arm.
Given that US choose disarm, USSR's best response is arm.
The dominant strategy for both countries is to choose arm as it is always their best response.