Question 1

A player that makes a move first:

Accepted Answer

A) has usually an advantage unless there is a zero- sum game. 
B) has always a substantial advantage. 
C) can use surprise to her advantage. 
D) has never a substantial advantage. 
A) has usually an advantage unless there is a zero- sum game. 
B) has always a substantial advantage. 
C) can use surprise to her advantage. 
D) has never a substantial advantage.

Question 2

The following mathematical properties should characterize the payoff functions:

Accepted Answer

A) discrete 
B) continuous and quasi- concave 
C) continuous and quasi- convex 
D) bounded 
A) discrete 
B) continuous and quasi- concave 
C) continuous and quasi- convex 
D) bounded

Question 3

A game with a mixed strategy Nash equilibrium:

Accepted Answer

A) has no pure strategy equilibria. 
B) may or may not have a pure strategy equilibria. 
C) does not have well- defined best response functions. 
D) will always have a pure strategy equilibria. 
A) has no pure strategy equilibria. 
B) may or may not have a pure strategy equilibria. 
C) does not have well- defined best response functions. 
D) will always have a pure strategy equilibria.

Question 4

Present a real life example that can be understood better if modeled as a prisoner's dilemma.

Accepted Answer

The fact that public washrooms tend to b

Question 5

In which of the following would we expect that there is no dominant strategy?

Accepted Answer

A) the use of performance enhancing drugs in professional sports 
B) the game of tick tack toe 
C) advertising in oligopoly 
D) the game output and keep 
A) the use of performance enhancing drugs in professional sports 
B) the game of tick tack toe 
C) advertising in oligopoly 
D) the game output and keep

Question 6

Firms Alba Inc. and Bute Inc. are duopolists selling firecrackers. Each of them has the option to charge high prices or low prices. Alba was longer in the business and its cost structure allows for higher profits. Also, Alba enjoys a strong reputation among customers and is able to charge higher prices. For the strategy combination (high, high)the payoff is (200,120), where the first position refers to Alba, and the second to Bute. Similarly, for (high, low)the payoff is (100,150), for (low, high)the payoff is (50, 0), while for (low, low)is (50, 25).
a)What is the dominant strategy for each firm?
b)Find the Nash equilibrium.
c)Can Alba induce Bute to charge a high price by threatening to charge a low price otherwise?

Accepted Answer

a)Charging a high price is a dominant st

Question 7

Consider the classic prisoner's dilemma problem where both players get a payoff of - 1 if they're silent, both get a payoff of - 6 if they fink, and if only one finks that person receives the payoff of zero and the one that remains silent gets a payoff of - 9. When the two prisoners are kept separated the Nash equilibrium is for both to think. Does the Nash equilibrium change if the prisoners are permitted to discuss their choice in advance but are still required to plead separately?

Accepted Answer

no. While both prisoners will agree to r

Question 8

If voting is costly yet it has no intrinsic value, voting in an election:

Accepted Answer

A) is a patriotic duty. 
B) is a dominant strategy. 
C) is a dominated strategy. 
D) is neither a dominated strategy nor a dominant strategy. 
A) is a patriotic duty. 
B) is a dominant strategy. 
C) is a dominated strategy. 
D) is neither a dominated strategy nor a dominant strategy.

Question 9

Once the state environmental protection agency devises its new policy to protect the environment, firms decide whether to remain in the state or move their operations to a neighboring state. In the language of game theory, this is an example of:

Accepted Answer

A) a cooperative game. 
B) a Prisoner Dilemma game. 
C) a threat. 
D) a sequential game. 
A) a cooperative game. 
B) a Prisoner Dilemma game. 
C) a threat. 
D) a sequential game.

Question 10

The prisoner's dilemma game:

Accepted Answer

A) leads to a Pareto efficient outcome. 
B) refers to the interaction between police and criminals. 
C) has few practical applications due to its simplicity. 
D) is a game of dominant strategies. 
A) leads to a Pareto efficient outcome. 
B) refers to the interaction between police and criminals. 
C) has few practical applications due to its simplicity. 
D) is a game of dominant strategies.

Question 11

Which of the following is true?

Accepted Answer

A) Inefficient bribe- taking in highly regulated economies can be regarded as a game of plain substitutes. 
B) The demand for bribes is an increasing function of the sum of bribes. 
C) Inefficient bribe- taking in highly regulated economies result in bribes that are efficient. 
D) Bribing is immoral but it has beneficial social role. 
A) Inefficient bribe- taking in highly regulated economies can be regarded as a game of plain substitutes. 
B) The demand for bribes is an increasing function of the sum of bribes. 
C) Inefficient bribe- taking in highly regulated economies result in bribes that are efficient. 
D) Bribing is immoral but it has beneficial social role.

Question 12

Choosing a mixed strategy entails:

Accepted Answer

A) a channel of communication between the players. 
B) using an incomprehensible strategy. 
C) randomly generating a strategy by optimally combining pure strategies. 
D) simply using pure strategies. 
A) a channel of communication between the players. 
B) using an incomprehensible strategy. 
C) randomly generating a strategy by optimally combining pure strategies. 
D) simply using pure strategies.

Question 13

One possible explanation for low voter turnouts during elections is

Accepted Answer

A) the cost of voting is too high 
B) there are rarely any good candidates 
C) the free rider problem 
D) do not vote" is the dominant strategy 
A) the cost of voting is too high 
B) there are rarely any good candidates 
C) the free rider problem 
D) do not vote" is the dominant strategy

Question 14

In numerous business courses, but very few economics courses, there are group projects. The Nash equilibrium for group projects is

Accepted Answer

A) for everyone to put in as little effort as possible 
B) to coerce the poorest student to exert effort 
C) for the best student to do all the work 
D) the best student to coordinate the work of the others 
A) for everyone to put in as little effort as possible 
B) to coerce the poorest student to exert effort 
C) for the best student to do all the work 
D) the best student to coordinate the work of the others

Question 15

Battle of the sexes is a:

Accepted Answer

A) game of chicken. 
B) variant of the prisoner's dilemma game. 
C) coordination game. 
D) famous novel. 
A) game of chicken. 
B) variant of the prisoner's dilemma game. 
C) coordination game. 
D) famous novel.

Question 16

The Nash equilibrium in a game of plain complements with simultaneous moves:

Accepted Answer

A) entails strategy values that "are too small". 
B) entails strategy values that "are too large". 
C) is Pareto- optimal. 
D) results from a game of mutual negative externalities. 
A) entails strategy values that "are too small". 
B) entails strategy values that "are too large". 
C) is Pareto- optimal. 
D) results from a game of mutual negative externalities.

Question 17

The essence of game theory as used in economics:

Accepted Answer

A) refers to learning how to make money by gambling in a casino. 
B) is to gain insights into the strategic interaction of economic players. 
C) boils down to a few principles that can be applied in any economic model. 
D) is to help building a sophisticated theory with no relevance for the real world. 
A) refers to learning how to make money by gambling in a casino. 
B) is to gain insights into the strategic interaction of economic players. 
C) boils down to a few principles that can be applied in any economic model. 
D) is to help building a sophisticated theory with no relevance for the real world.

Question 18

The Nash equilibrium in a prisoner's dilemma game:

Accepted Answer

A) has few real- life applications. 
B) does not necessarily lead to jail time for the players. 
C) is the set of the dominant strategies for all players. 
D) is Pareto- optimal. 
A) has few real- life applications. 
B) does not necessarily lead to jail time for the players. 
C) is the set of the dominant strategies for all players. 
D) is Pareto- optimal.

Question 19

A one shot game in a prisoner's dilemma game:

Accepted Answer

A) the prisoner has a chance of confessing before being shot. 
B) implies there are no consequences to decisions outside the payoffs mentioned in the game. 
C) allows players to punish opposing player for choosing to fink. 
D) players repeatedly interact with each other. 
A) the prisoner has a chance of confessing before being shot. 
B) implies there are no consequences to decisions outside the payoffs mentioned in the game. 
C) allows players to punish opposing player for choosing to fink. 
D) players repeatedly interact with each other.

Question 20

In the case of the team production, the best response functions:

Accepted Answer

A) do not intersect. 
B) are positively sloped. 
C) pass through the origin. 
D) are negatively sloped. 
A) do not intersect. 
B) are positively sloped. 
C) pass through the origin. 
D) are negatively sloped.

A player that makes a move first:

The following mathematical properties should characterize the payoff functions:

A game with a mixed strategy Nash equilibrium:

Present a real life example that can be understood better if modeled as a prisoner's dilemma.

In which of the following would we expect that there is no dominant strategy?

If voting is costly yet it has no intrinsic value, voting in an election:

Once the state environmental protection agency devises its new policy to protect the environment, firms decide whether to remain in the state or move their operations to a neighboring state. In the language of game theory, this is an example of:

The prisoner's dilemma game:

Which of the following is true?

Choosing a mixed strategy entails:

One possible explanation for low voter turnouts during elections is

In numerous business courses, but very few economics courses, there are group projects. The Nash equilibrium for group projects is

Battle of the sexes is a:

The Nash equilibrium in a game of plain complements with simultaneous moves:

The essence of game theory as used in economics:

The Nash equilibrium in a prisoner's dilemma game:

A one shot game in a prisoner's dilemma game:

In the case of the team production, the best response functions:

Microeconomics: a Working Methodology

A Theory of Preferences

Demand Theory

More Demand Theory

Intertemporal Decision Making and Capital Values

Production Cost: One Variable Input

Production Cost: Many Variable Inputs

The Theory of Perfect Competition

Applications of the Competitive Model

Monopoly

Input Markets and the Allocation of Resources

Labour Market Applications

Competitive General Equilibrium

Price Discrimination Monopoly Practices

Game Theory and Oligopoly

Choice Making Under Uncertainty

Assymmetric Information, the Rules of the Game, and Externalities

The Theory of the Firm

Assymetric Information and Market Behaviour

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Exam 15: Introduction to Game Theory

A player that makes a move first:

The following mathematical properties should characterize the payoff functions:

A game with a mixed strategy Nash equilibrium:

Present a real life example that can be understood better if modeled as a prisoner's dilemma.

In which of the following would we expect that there is no dominant strategy?

If voting is costly yet it has no intrinsic value, voting in an election:

Once the state environmental protection agency devises its new policy to protect the environment, firms decide whether to remain in the state or move their operations to a neighboring state. In the language of game theory, this is an example of:

The prisoner's dilemma game:

Which of the following is true?

Choosing a mixed strategy entails:

One possible explanation for low voter turnouts during elections is

In numerous business courses, but very few economics courses, there are group projects. The Nash equilibrium for group projects is

Battle of the sexes is a:

The Nash equilibrium in a game of plain complements with simultaneous moves:

The essence of game theory as used in economics:

The Nash equilibrium in a prisoner's dilemma game:

A one shot game in a prisoner's dilemma game:

In the case of the team production, the best response functions:

Microeconomics: a Working Methodology

A Theory of Preferences

Demand Theory

More Demand Theory

Intertemporal Decision Making and Capital Values

Production Cost: One Variable Input

Production Cost: Many Variable Inputs

The Theory of Perfect Competition

Applications of the Competitive Model

Monopoly

Input Markets and the Allocation of Resources

Labour Market Applications

Competitive General Equilibrium

Price Discrimination Monopoly Practices

Game Theory and Oligopoly

Choice Making Under Uncertainty

Assymmetric Information, the Rules of the Game, and Externalities

The Theory of the Firm

Assymetric Information and Market Behaviour

Filters