What is iterated elimination of weakly dominated strategies?

The picture changes when weakly dominated strategies are considered. Iterative elimination of weakly dominated strategies fails to capture common knowledge of weak-dominance rationality, which requires that players do not play strategies that are weakly dominated given their knowledge about the opponents’ strategies.

Which strategy profiles survive iterated elimination of strictly dominated strategies?

In the right game, it is easy to see that no strategy is strictly dominated. Hence all strategies will survive iterated elimination of strictly dominated strategies.

What is iterated dominant strategy?

Definition: A player’s strategy is (strictly) dominated if there exists another strategy giving that player a strictly higher payoff for all combinations of strategies by other players. (“There’s something else that’s always strictly better.”) Example: professor giving a quiz.

What are weakly dominated strategies?

-a weakly dominant strategy is that strategy that provides at least the same utility for all the other player’s strategies, and strictly greater for some strategy. A dominant strategy equilibrium is reached when each player chooses their own dominant strategy.

How do you find a dominated strategy?

A strategy is dominated if there always exist a course of action which results in higher payoff no matter what the opponent does. Identifying strategic dominance in a game is important in identifying its Nash equilibrium, an outcome which no player would want to change.

How do you identify dominated strategies?

Accordingly, a strategy is dominant if it leads a player to better outcomes than alternative strategies (i.e., it dominates the alternative strategies). Conversely, a strategy is dominated if it leads a player to worse outcomes than alternative strategies (i.e., it is dominated by the alternative strategies).

How do you determine a dominated strategy?

In game theory, a dominant strategy is the course of action that results in the highest payoff for a player regardless of what the other player does. Not all players in all games have dominant strategies; but when they do, they can blindly follow them.

Will a player ever play a weakly dominated strategy?

One cannot eliminate a strategy if it is weakly dominated but not strictly dominated. For example, in the game L R T 1, 1 0, 0 B 0, 0 0, 0 (T,L) is a dominant strategy equilibrium, but no strategy is eliminated because T does not strictly dominate B and L does not strictly dominate R.

Are all strictly dominated strategies weakly dominated?

Strategy B is strictly dominant if strategy B strictly dominates every other possible strategy. Strategy B is weakly dominant if strategy B weakly or strictly dominates all other strategies, but some (or all) strategies are only weakly dominated by B.

What is weakly dominated strategy?

A strategy is weakly dominant if, regardless of what any other players do, the strategy earns a player a payoff at least as high as any other strategy, and, the strategy earns a strictly higher payoff for some profile of other players’ strategies.

Which is an example of iterated deletion of dominated actions?

Iterated Deletion of Dominated Actions Iterated Deletion of Weakly Dominated Actions. For example, bidding any value di erent from the true value in second price auction is weakly dominated by bidding the true value. More generally, if there is a weak dominant action, then every other action is weakly dominated by it.

What does it mean to eliminate a weakly dominated strategy?

And likewise when solving for δ. Check the definition of what it means for a strategy to be weakly dominated by another strategy. Say the strategies for Player 1 and 2 are A = { a 1, a 2, a 3 } and B = { b 1, b 2 } respectively. You’ll find that b 1 weakly dominates b 2, so we may eliminate b 2.

When is IIN G is a strictly dominated strategy?

iin G is strictly dominated if there is a mixed strategy i2( A i) that strictly dominates a i. IClearly a strictly dominated action is a never-best response, hence not rationalizable. IWhen some action is strictly dominant, then every other action is strictly dominated by it.

What is the definition of a strictly dominated response?

i) that strictly dominates a i. IClearly a strictly dominated action is a never-best response, hence not rationalizable. IWhen some action is strictly dominant, then every other action is strictly dominated by it.