00:03
Hello, let me first they make the pay -off matrix, otherwise it will be less convenient to explain.
00:13
So we have two players, we have player one.
00:19
Let me use the red color for player one.
00:26
And this player has two strategies.
00:28
Strategy a and strategy b so and there are payoffs for our first player minus 10 and minus 100 200 and 140 and also we have the second player negative 20 and 120 and also we have the second player negative 10 22, negative 100 and 180.
01:14
And strategies are c and d for player 2.
01:22
So this is the pay of metrics.
01:33
Okay.
01:34
And now we can answer your questions.
01:40
Okay, suppose this is a one shot game and a, let's determine the dominant strategy for each player.
01:55
Let's start with the first player and as we can see if the second player chooses strategy c we compare outcomes for player one which is negative 10 and negative 100 and negative 10 is of course more preferable and if player 2 chooses his strategy d now 200 is better than 140 so in both cases the player 1 would choose strategy a so for player one, let me use the red color.
02:56
For player one, the dominant strategy is a.
03:03
Now let's look to player two.
03:09
What about player two? when player one plays his strategy a, negative 10 is better than negative 100.
03:20
And for player 1 strategy b, 220 is also better than 180.
03:29
So in both cases, strategy c is more preferable.
03:37
So strategy c is the dominant strategy for player 2.
03:47
Okay, let's go to the part b.
03:52
Part b in this part it's about secure strategies.
04:01
So we compare the negative outcomes from both strategies...