Solving for dominant strategies and the Nash equilibrium

Suppose Rajiv and Simone are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices.

For example, the lower-right cell shows that if Rajiv chooses Right and Simone chooses Right, Rajiv will receive a payoff of 3 and Simone will receive a payoff of 7.

Simone Left Right Left 4, 6 6, 8 Rajiv Right 7, 5 3, 7The only dominant strategy in this game is for W to choose W . Left Right The only dominant strategy in this game is for to chooseLeft Right The outcome reflecting the unique Nash equilibrium in this game is as follows: Rajiv chooses V and Simone choosesLeft Right The outcome reflecting the unique Nash equilibrium in this game is as follows: Rajiv chooses and Simone chooses