In game theory, a dominant strategy is:

• A. a strategy that is optimal only when players communicate and coordinate
• B. a strategy that results in the lowest possible payoff for both players
• C. a strategy that yields a higher payoff for a player regardless of the strategies chosen by other players
• D. a strategy that is chosen only if the other player cooperates

Answer: (C)

Verified step by step guidance

1. Understand the concept of a dominant strategy in game theory: it is a strategy that provides a player with the highest payoff no matter what the other players do.
2. Recognize that a dominant strategy does not depend on communication or coordination between players; it is chosen independently of others' actions.
3. Note that a dominant strategy is not about minimizing payoffs for both players; rather, it focuses on maximizing the individual player's payoff.
4. Identify that a dominant strategy is not conditional on the cooperation of other players; it is optimal regardless of others' choices.
5. Conclude that the correct definition of a dominant strategy is one that yields a higher payoff for a player regardless of the strategies chosen by other players.