juniorGame Theory
What is dominant strategy equilibrium?
Updated May 16, 2026
Short answer
A dominant strategy equilibrium occurs when every player plays their dominant strategy.
Deep explanation
If each player has a dominant strategy and chooses it, the resulting outcome is the dominant strategy equilibrium. It is a strong prediction concept but does not exist in all games.
Real-world example
Used in auction mechanisms where bidding truthfully is dominant.
Common mistakes
- Assuming every game has dominant strategies.
Follow-up questions
- Is it always Nash equilibrium?
- Why is it rare?