Two firms play the game below. Each must choose strategy 1 or 2. They choose their strategies simultaneously and without coopera
ting with each other. Firm A's payoffs are on the left side of each cell, and Firm B's payoffs are on the right. Firm A/Firm B Strategy 1 Strategy 2
Strategy 1 10, 16 8, 12
Strategy 2 13, 12 17, 10
Determine the dominant strategy for each firm.1) For Firm A :A. Strategy 1 is a dominant strategyB. Strategy 2 is a dominant strategyC. Neither strategy is the dominant strategy
A strategy can be considered a dominant strategy for a player if that player gets the best payoff yields no matter what strategies the other players choose. Going by the question, Firm A getting an overall payoff of 30 from Strategy 2 as compared to 18 from Strategy 1.