Question 1

The prisoner's dilemma:

Accepted Answer

A) is characterized by several Nash equilibria. 
B) yields a Pareto- optimal equilibrium. 
C) can be used to model a variety of economic settings. 
D) does not have many real- life applications. 
A) is characterized by several Nash equilibria. 
B) yields a Pareto- optimal equilibrium. 
C) can be used to model a variety of economic settings. 
D) does not have many real- life applications.

Question 2

In a game of plain complements:

Accepted Answer

A) there is no relationship between a player's strategy and the payoff of the other player. 
B) there is a positive relationship between the players' payoffs. 
C) there is a negative relationship between a player's strategy and the payoff of the other player. 
D) there is a positive relationship between a player's strategy an the payoff of the other player. 
A) there is no relationship between a player's strategy and the payoff of the other player. 
B) there is a positive relationship between the players' payoffs. 
C) there is a negative relationship between a player's strategy and the payoff of the other player. 
D) there is a positive relationship between a player's strategy an the payoff of the other player.

Question 3

Annie and Peter have two strategies each at their disposal: top and bottom. For the strategy combinations (top, top)and (top, bottom), the payoff is (0,100)in each case, where the first position refers to Annie, and the second to Peter. Similarly, for (bottom, top)the payoff is (- 20, - 50), while for (bottom, bottom)is (60, 60). Is there a Nash equilibrium in pure strategies? Is there a dominant strategy Nash equilibrium?

Accepted Answer

Yes, there are two:

The prisoner's dilemma:

In a game of plain complements:

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

Exam 15: Introduction to Game Theory

The prisoner's dilemma:

In a game of plain complements:

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