Dominant Strategy
A strategy that is the best for a player, regardless of the strategies chosen by other players.
Implications
In game theory and strategic planning, a dominant strategy is the best course of action for a player, regardless of what others do. It is the strategy that provides the most favorable outcome for a player, no matter what the competition chooses.
Example
Example: In a price war, a dominant strategy for a low-cost airline might be to lower prices aggressively because it can sustain lower margins better than its competitors, ensuring market share growth.
Related Terms
Different from a Nash equilibrium, where no player can improve their outcome by changing strategy if others keep theirs unchanged, a dominant strategy always provides the best outcome for the player using it.
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