What is the definition of a dominant strategy in game theory?

1- to allocate all personnel resources towards defensive talent in order to dominate opposing offenses

2- the best strategy to pick, assuming the other player picks their own best choice

3- to make the exact same move that was made by the other player

4- the choice that causes the payoff for the other player to be minimized, regardless of the payoff it earns

5- the best strategy to pick no matter which moves are chosen by the other player

5- the best strategy to pick no matter which moves are chosen by the other player

Explanation:

Dominant strategy is the best strategy to pick no matter which moves are chosen by the other player.

Dominant strategy is used in game theory to determine the best strategy for oligopoly firms in a collusion.

For example, in a prisoners dilemma, there are two prisoners, if both of them confess, they get 5 years in prison, if both of them don't confess, they are set free and if one confesses and the other doesn't, the prisoner that confesses gets 2 years in prison while the other who doesn't confess gets 10 years in prison.

The dominant strategy here is for the prisoners to confess. It is the best strategy regardless of what the other prisoner does.

I hope my answer helps you.

commercial banking

provide online payment services

provide online banking

asset management firms

invest in people's funds in securities

accept tax return refunds