Iterated Elimination of Dominated Strategies

There are games which have not Dominant Strategy Equilibrium. Such game are solved through IEDS where each player's Dominated Strategies are removed and then the outcome of the game is obtained.

Player 2
Player 1
Left
Mid
Right
Up
1,0
1,2
0,1
Down
0,3
0,1
2,0

In the Game above, none of the players has a Dominant Strategy. However, for Player 2, "Right" is Strictly Dominated by "Mid." Thus there is no reason why Player 2 would prefer "Right" over "Mid" at any point in game. So we cross out "Right" leaving us with only "Left" and "Mid" for player 2.

Player 2
Player 1 Left Mid
Up 1,0 1,2
Down 0,3 0,1


Now since player 1 has "Down" Strictly Dominated by "Up", we cross out "Down" leaving us with only


Player 2
Player 1
Left
Mid
Up
1,0
1,2

Under this condition, the best strategy for Player 2 is "Mid" giving his a payoff of "2" rather than "0" if he chooses "Left". Thus the unique solution for the game is (Up, Mid) giving a Payoff = (1,2) which is a Strictly Dominated IEDS Equilibrium. Note, it is Strictly Dominated Solution because all the strategies that were Eliminated were Strictly Dominated. If any one of them had been "Weakly Dominated", then the Equilibrium would be called "Weakly Dominated IEDS Equilibrium"