Economics · Game Theory Concepts

Match the following Game Theory concepts with their correct definitions: P. Dominant Strategy – 1. Each player's strategy is optimal given other players' strategies; no profitable unilateral deviation Q. Nash Equilibrium – 2. A strategy that yields higher payoff than all other strategies regardless of opponents' choices R. Subgame Perfect Equilibrium – 4. A Nash equilibrium that is also a Nash equilibrium in every subgame; eliminates non-credible threat S. Mixed Strategy Nash Equilibrium – 3. Players randomize over pure strategies such that each player is indifferent among all strategies played with positive probability