The payoff pattern of Nash Equilibria By a Change of Risk in 2×2 Simulation-Based Game

The risk of the Dominant Strategic payoff (DS payoff) plays very important role in decision-making process when the payoffs are not realized. We examine the risk effect on the NE payoff and show that the distance level of two strategic payoffs eliminates the risk effect of the DS payoff. It is worthy to note that the risk effect of the DS payoff on the NE payoff, nevertheless, comparing with the DS payoff, the NE payoff with higher expected value and lower variance. Moreover, the higher the standard deviation of the DS payoff, which is larger than 1, is, the higher the coefficients of the NE payoff are.