Exam 8: Game Theory and Oligopoly

-Refer to the payoff matrix above. Which of the following is true for Campers R Us?

The mangers of Happy Campers and Camp with Us are engaged in a strategic interaction in which their interests are aligned, but there is more than one possible equilibrium. All of the following can help the managers determine the equilibrium outcome except which one?

Camp with Us and Happy Campers compete in the market for campers. Each firm must decide each season if they are going to offer special financing or not. The above payoff matrix shows each firm's net economic profit at each pair of strategies. -Refer to the payoff matrix above. In reference to the Nash equilibrium/equilibria in this game, which of the following is true?

Cruise R Us and Cruise the World compete in the cruise line industry. Each firm needs to determine if they are going to offer special cruise packages with special rates or not offer the specials. The above payoff matrix shows the firms' net economic profit for each set of strategies. -Refer to the payoff matrix above. In reference to the Nash equilibrium/equilibria in this game, which of the following is true?

Jet Cruises wants to prevent Easy Sail from entering the sailboat market. The above game tree illustrates the different strategi corresponding payoffs for the two firms. Both Jet Cruises and Easy Sail have the same strategies of advertising (Ad) or not ad (No Ad). The payoffs represent net profit in millions. -If Jet Cruises chooses to Ad, Easy Sail should and earn million in net profit.

Happy Feet wants to prevent Best Nails from entering the nail salon market. The above game tree illustrates the different stra and corresponding payoffs for the two firms. Both Happy Feet and Best Nails have the same strategies of advertising (Ad) or advertising (No Ad). The payoffs represent net profit in millions. -If Happy Feet chooses to Ad and Best Nails then chooses to No Ad, Happy Feet earns million in net profit and Best Nails earns million.

Chess is an example of a sequential game.

If Best Lights and Bright Lights are competing in a duopoly and it is always best for Best Lights to charge a price of $4 regardless of the price Bright Lights charges, then charging $4 is ________for Best Lights.

-Refer to the payoff matrix above. Which of the following is the Nash Equilibrium?

The mangers of Healthy Snacks and Healthy Bars are engaged in a strategic interaction in which their interests are aligned, but there is more than one possible equilibrium. All of the following can help the managers determine the equilibrium outcome except which one?

It is not possible for a game to have no pure- strategy Nash equilibria.

The manager of a large luxury hotel chain is currently negotiating a four year contract with a linens supplier. The linens company will supply fresh laundered bedding and towels to the hotel over a four year period; however, the hotel chain can ends its contract with the linens company at the end of the first, second, or third years if the linens company does not supply quality linens. The manager of the hotel chain should be most concerned about the quality of linens in which year?

All of the following are true for sequential games except which one?

The mangers of Healthy Snacks and Healthy Bars are engaged in a strategic interaction in which their interests are aligned, but there is more than one possible equilibrium. All of the following can help the managers determine the equilibrium outcome except which one?

Happy Feet wants to prevent Best Nails from entering the nail salon market. The above game tree illustrates the different stra and corresponding payoffs for the two firms. Both Happy Feet and Best Nails have the same strategies of advertising (Ad) or advertising (No Ad). The payoffs represent net profit in millions. -If Happy Feet chooses to No Ad and Best Nails then chooses to Ad, Happy Feet earns million in net profit and Best Nails earns million.

Pizza at Home is a frozen pizza company that supplies several large grocery store chains. The managers of Pizza at Home are currently negotiating a four year contract with Saucy Pizza, a manufacturer of pizza sauce. Saucy Pizza will supply a specified quantity of canned tomato sauce to Pizza at Home over a four year period; however; Pizza at Home can ends its contract with Saucy Pizza at the end of the first, second, or third years if Saucy Pizza does not supply quality tomato sauce. What can the manager of Pizza at Home do to avoid the end- game problem?

Getaway Spas wants to prevent Relax with Us from entering the luxury spa market. If Getaway Spas advertises that it will always undercut any competitor's price, the effect of advertising ______Getaway Spas' profits due to its cost and _______ Getaway Spas' profits due to a(n)______ In its demand.

In reality, it is_______ that managers flip a coin to make decisions; but actual randomness______ desirable in certain situations.

The mangers of Healthy Snacks and Healthy Bars are engaged in a strategic interaction in which their interests are aligned, but there is more than one possible equilibrium. All of the following can help the managers determine the equilibrium outcome except which one?

Camp with Us and Happy Campers compete in the market for campers. Each firm must decide each season if they are going to offer special financing or not. The above payoff matrix shows each firm's net economic profit at each pair of strategies. -Refer to the payoff matrix above. In reference to the Nash equilibrium/equilibria in this game, which of the following is true?