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Is it possible to find a nash equilibrium that is not an equilibrium in weakly dominant strategy?

Economics Asked on July 31, 2021

I know that it is possible to have a Nash equilibrium which is not an equilibrium in dominant strategy, but is it also applicable for equilibrium in weakly dominant strategy (i.e. a Nash equilibrium which is NOT an equilibrium in weakly dominant strategy)? If yes, what would be an example?

One Answer

begin{array}{|c|c|c|} hline &L&Rhline T&1,1&0,0hline B&0,0&0,0hline end{array}

In the game above, there are two pure strategy Nash equilibria:

  • $(T,L)$ is an equilibrium in weakly dominant strategies;
  • $(B,R)$ is an equilibrium in weakly dominated strategies.

Noting that "dominant" and "dominated" are two different words, I believe the above example answers both the question in your post as well as your question in the comment below.

Answered by Herr K. on July 31, 2021

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