Example (Rice–Cassava Game): Rows = Anil, Columns = Bala.
Rice Cassava
Rice (4, 3) (4, 5)
Cassava (6, 4) (6, 2)
g
2. Core Analytical Concepts
Concept Definition Application
fro
Best Response The strategy that gives the
highest payoff, given the
other player’s move.
Find each player’s
best-response for all
opponent actions.
ol
Nash A set of strategies where In Rice–Cassava: (Cassava,
Equilibrium (NE) all players play Rice) is NE.
best-responses
simultaneously.
el
Dominant A strategy that yields a In the pest-control game,
Strategy higher payoff no matter Toxic Tide dominates for
what the other player does. both.
th
Dominant-Strate Both players play dominant Yields the classic Prisoner’s
gy Equilibrium strategies. Dilemma outcome (T, T).
Rice Cassava
Rice (4, 3) (4, 5)
Cassava (6, 4) (6, 2)
g
2. Core Analytical Concepts
Concept Definition Application
fro
Best Response The strategy that gives the
highest payoff, given the
other player’s move.
Find each player’s
best-response for all
opponent actions.
ol
Nash A set of strategies where In Rice–Cassava: (Cassava,
Equilibrium (NE) all players play Rice) is NE.
best-responses
simultaneously.
el
Dominant A strategy that yields a In the pest-control game,
Strategy higher payoff no matter Toxic Tide dominates for
what the other player does. both.
th
Dominant-Strate Both players play dominant Yields the classic Prisoner’s
gy Equilibrium strategies. Dilemma outcome (T, T).
