#Asymmetric_Games
We can use strict dominance on games even when they are not as symmetric as the prisoner’s dilemma or deadlock. Consider this one: Unlike before, each player has a distinct set of payoffs. But if we run through the same process as before, we will see that is the only reasonable solution.
Overall, strict dominance is a powerful tool in game theory. But while the concept is simple, applying it can be difficult. Even in matrix form, a game still has a lot of information. To successfully find dominated strategies, we must focus on one player’s payoffs at a time. Above, we used question marks to isolate the relevant payoffs. When searching for strictly dominated strategies on your own, mentally block out the irrelevant payoffs and strategies in a similar manner.
Takeaway Points
- Game theory is a mathematical method to ensure that assumptions imply conclusions.
- Payoffs in a game matrix represent a player’s preferences according to the assumptions.
- Strategy x strictly dominates strategy y if it produces a higher payoff than y regardless of what all other players do.
- Playing a strictly dominated strategy is irrational— another strategy always yields a better outcome.