Question 1

If one-time gains from defection are always less than the discounted present value of an infinite time stream of cooperative payoffs at some given discount rate,the decision-makers have escaped

Accepted Answer

A)  the Folk Theorem
B)  the law of large numbers
C)  the Prisoner's dilemma
D)  the paradox of large numbers
E)  the strategy of recusalF) C) and D)
G) C) and E)

Question 2

A strategy game is

Accepted Answer

A)  any pricing competition among firms
B)  a situation arising from independent decision making among economic participants
C)  interpendent choice behavior by individuals or groups who share a common goal
D)  none of the aboveE) A) and C)
F) B) and D)

Question 3

In ____ 2-person,nonzero-sum games there is no communication between the participants and no way to enforce agreements.

Accepted Answer

A)  noncooperative
B)  cooperative
C)  a and b
D)  none of the aboveE) A) and D)
F) A) and C)

Question 4

If two firms operate in a market that is characterized as being a Prisoner's Dilemma,and the two strategies given them are to restrict output or expand output,which of the following strategy pairs would represent the cooperative solution in a duopoly for firm 1 and firm 2,and firm 1 given first in each pair?

Accepted Answer

A)  {expand output,restrict output}
B)  {restrict output,expand output}
C)  {restrict output,restrict output}
D)  {expand output,expand output}E) None of the above
F) A) and B)

Question 5

A key to analyzing subgame perfect equilibrium strategy in sequential games is

Accepted Answer

A)  predictable behavior
B)  an explicit order of play for at least some participants
C)  information sets that are known with certainty
D)  credible threats clearly communicated
E)  randomnessF) A) and B)
G) C) and D)

Question 6

Retailers A and B anticipate many repetitions of the following pricing game in which they must choose between discounting or maintaining higher prices.Under what circumstances will store A resist discounting and choose MAINTAIN?

Accepted Answer

Store A has a dominant strategy to disco...

Question 7

Cooperation in repeated prisoner's dilemma situations seems to be enhanced by all of the following except

Accepted Answer

A)  limited punishment schemes
B)  clarity of conditional rewards
C)  grim trigger strategy
D)  provocability--i.e. ,credible threats of punishment
E)  tit for tat strategyF) C) and D)
G) A) and B)

Question 8

The starting point of many methods for predicting equilibrium strategy in sequential games is

Accepted Answer

A)  designing proactive reactions to rival actions
B)  information sets
C)  uncertain outcomes
D)  backwards induction based on an explicit order of play
E)  endgame analysisF) A) and B)
G) None of the above

Question 9

Non-cooperative sequential games can incorporate all the following features except

Accepted Answer

A)  a single decision-maker in the endgame
B)  no communication
C)  finite or infinite time periods
D)  third-party enforceable agreements
E)  an explicit order of playF) A) and B)
G) B) and E)

Exam 13: Best Practice Tactics: Game Theory

In ____ 2-person,nonzero-sum games there is no communication between the participants and no way to enforce agreements.

Correct Answer
verified

Cooperation in repeated prisoner's dilemma situations seems to be enhanced by all of the following except

Correct Answer
verified

If one-time gains from defection are always less than the discounted present value of an infinite time stream of cooperative payoffs at some given discount rate,the decision-makers have escaped

Correct Answer
verified

A key to analyzing subgame perfect equilibrium strategy in sequential games is

Correct Answer
verified

A strategy game is

Correct Answer
verified

The starting point of many methods for predicting equilibrium strategy in sequential games is

Correct Answer
verified

Correct Answer
verified

Retailers A and B anticipate many repetitions of the following pricing game in which they must choose between discounting or maintaining higher prices.Under what circumstances will store A resist discounting and choose MAINTAIN?

Correct Answer
verified
Store A has a dominant strategy to disco...
View Answer

Non-cooperative sequential games can incorporate all the following features except

Correct Answer
verified

Exam 13: Best Practice Tactics: Game Theory

In ____ 2-person,nonzero-sum games there is no communication between the participants and no way to enforce agreements.

Correct AnswerverifiedShow Answer

Cooperation in repeated prisoner's dilemma situations seems to be enhanced by all of the following except

Correct AnswerverifiedShow Answer

If one-time gains from defection are always less than the discounted present value of an infinite time stream of cooperative payoffs at some given discount rate,the decision-makers have escaped

Correct AnswerverifiedShow Answer

A key to analyzing subgame perfect equilibrium strategy in sequential games is

Correct AnswerverifiedShow Answer

A strategy game is

Correct AnswerverifiedShow Answer

The starting point of many methods for predicting equilibrium strategy in sequential games is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Retailers A and B anticipate many repetitions of the following pricing game in which they must choose between discounting or maintaining higher prices.Under what circumstances will store A resist discounting and choose MAINTAIN?

Correct AnswerverifiedStore A has a dominant strategy to disco...View AnswerShow Answer

Non-cooperative sequential games can incorporate all the following features except

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Store A has a dominant strategy to disco...
View Answer

Correct Answer
verified