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Consider the following contribution to public good as a prisoner's dilemma with the payoff matrix:
| Person B | |||
| Do not contribute | Contribute | ||
| Person A | Do not contribute | A pays $0, receives $0, net gain $0 B pays $0, receives $0, net gain $0 |
A pays $0, receives $15, net gain $15 B pays $20, receives $15, net gain $-5 |
| Contribute | A pays $20, receives $15, net gain $-5 B pays $0, receives $15, net gain $15 |
A pays $20, receives $30, net gain $10 B pays $20, receives $30, net gain $10 |
What is the dominant strategy for player A?
The dominant strategy is the strategy an individual (or firm) will pursue regardless of the other individual's (or firm's) decision.
What is the dominant strategy for player B?
The dominant strategy is the strategy an individual (or firm) will pursue regardless of the other individual's (or firm's) decision.
What is the Nash Equilibrium in this situation?
Nash equilibrium is the solution to a game-theoretic scenario when no player has an incentive to change their decision, taking into account what the players have decided and assuming the other players don't change their decisions. Review the page on the prisoner's dilemma for more information.
Box 1: Select the best answer
Do not contribute.
Box 2: Select the best answer
Do not contribute.
Box 3: Select the best answer
$0, $0