Question 1

A system of behaviour that remains the same until another player takes some course of action that precipitates a different response is:

Accepted Answer

A)  a finitely repeated game with known duration.
B)  a finitely repeated game of unknown duration.
C)  an infinitely repeated game.
D)  a trigger strategy.E) B) and C)
F) A) and D)

Question 2

The so-called Prisoner's Dilemma:

Accepted Answer

A)  is a one-shot game with ongoing interaction between competitors.
B)  is a repeated game.
C)  has no dominant strategy.
D)  exists because both would be better off if they could be assured that the other would confess.E) None of the above
F) All of the above C

Question 3

A competitive strategy to set less than monopoly prices in an effort to deter entry by new competitors is called:

Accepted Answer

A)  market penetration pricing.
B)  limit pricing.
C)  predatory pricing.
D)  none of these.E) A) and D)
F) B) and C)

Question 4

A secure strategy guarantees:

Accepted Answer

A)  the best result regardless of the actions taken by other players.
B)  the best possible outcome given the worst possible scenario.
C)  that no player can improve their own payoff by unilaterally changing their own strategy.
D)  that rivals will not be able to predict strategic moves.E) All of the above
F) A) and B)

Question 5

The desirability of maintaining a reputation for selling high-quality goods and services is minimal in the case of:

Accepted Answer

A)  a finitely repeated game with known duration.
B)  a finitely repeated game of unknown duration.
C)  an infinitely repeated game.
D)  none of these.E) None of the above
F) A) and B)

Question 6

Market penetration pricing by newcomers is apt to be most successful when:

Accepted Answer

A)  network externalities lead to significant first-mover advantages.
B)  established and thriving firms enjoy customer lock-in effects.
C)  aggressive predatory pricing strategies are necessary to limit competitor entry.
D)  applied in competitive markets.E) A) and B)
F) A) and C)

Question 7

Game theory is a general framework to help decision making when:

Accepted Answer

A)  facing irrational behaviour by others.
B)  players are unable to anticipate the equilibrium calculations of other players.
C)  payoffs depend on actions taken by others.
D)  cannot be anticipated.E) A) and C)
F) A) and D)

Question 8

A game in which joint action is favoured is called a:

Accepted Answer

A)  zero-sum game.
B)  cooperative game.
C)  positive-sum game.
D)  negative-sum game.E) A) and D)
F) All of the above B

Question 9

A unique ability to create, distribute, or service products valued by customers is called:

Accepted Answer

A)  a first-mover advantage.
B)  a competitive advantage.
C)  a comparative advantage.
D)  economy of scale.E) A) and B)
F) A) and C)

Question 10

In a simultaneous-move game, each player:

Accepted Answer

A)  is aware of all prior moves.
B)  need not understand the benefits from revealing useful information.
C)  adopts the look ahead and extrapolate back principle.
D)  moves without any direct knowledge of moves made by other players.E) A) and D)
F) A) and C) D

Exam 14: Game Theory and Competitive Strategy

A system of behaviour that remains the same until another player takes some course of action that precipitates a different response is:

Correct Answer
verified

The so-called Prisoner's Dilemma:

Correct Answer
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C

A competitive strategy to set less than monopoly prices in an effort to deter entry by new competitors is called:

Correct Answer
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A secure strategy guarantees:

Correct Answer
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The desirability of maintaining a reputation for selling high-quality goods and services is minimal in the case of:

Correct Answer
verified

Market penetration pricing by newcomers is apt to be most successful when:

Correct Answer
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Game theory is a general framework to help decision making when:

Correct Answer
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A game in which joint action is favoured is called a:

Correct Answer
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B

A unique ability to create, distribute, or service products valued by customers is called:

Correct Answer
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In a simultaneous-move game, each player:

Correct Answer
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D

Exam 14: Game Theory and Competitive Strategy

A system of behaviour that remains the same until another player takes some course of action that precipitates a different response is:

Correct AnswerverifiedShow Answer

The so-called Prisoner's Dilemma:

Correct AnswerverifiedC

A competitive strategy to set less than monopoly prices in an effort to deter entry by new competitors is called:

Correct AnswerverifiedShow Answer

A secure strategy guarantees:

Correct AnswerverifiedShow Answer

The desirability of maintaining a reputation for selling high-quality goods and services is minimal in the case of:

Correct AnswerverifiedShow Answer

Market penetration pricing by newcomers is apt to be most successful when:

Correct AnswerverifiedShow Answer

Game theory is a general framework to help decision making when:

Correct AnswerverifiedShow Answer

A game in which joint action is favoured is called a:

Correct AnswerverifiedB

A unique ability to create, distribute, or service products valued by customers is called:

Correct AnswerverifiedShow Answer

In a simultaneous-move game, each player:

Correct AnswerverifiedD

Correct Answer
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Correct Answer
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C

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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B

Correct Answer
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Correct Answer
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D