Question 1

The _____ model is an example of a simultaneous game, while the _____ model is an example of a sequential game.

Accepted Answer

A)  Cournot; Stackelberg 
B)  Cournot; Bertrand 
C)  Bertrand; Cournot 
D)  Stackelberg; Bertrand 
A)  Cournot; Stackelberg 
B)  Cournot; Bertrand 
C)  Bertrand; Cournot 
D)  Stackelberg; Bertrand A

Question 2

Use the following to answer question:
Table 12.13  
-(Table 12.13) The payoffs represent dollars. If both players follow their maximin strategy, the outcome of this game is:

Accepted Answer

A)  (-500 , -500). 
B)  (15 , -25). 
C)  (25 , -15). 
D)  (0 , 0). 
A)  (-500 , -500). 
B)  (15 , -25). 
C)  (25 , -15). 
D)  (0 , 0). D

Question 3

Use the following to answer question:
Figure 12.9  
-(Figure 12.9) Brad may threaten to play strategy _____ if Sly plays strategy _____.

Accepted Answer

A)  B; A, in an attempt to move the game's outcome from (10 , 3) to (7 , 4) 
B)  B; B, in an attempt to move the game's outcome from (10 , 3) to (7 , 4) 
C)  B; A or B 
D)  A; A, in an attempt to move the game's outcome from (1 , 2) to (10 , 3). 
A)  B; A, in an attempt to move the game's outcome from (10 , 3) to (7 , 4) 
B)  B; B, in an attempt to move the game's outcome from (10 , 3) to (7 , 4) 
C)  B; A or B 
D)  A; A, in an attempt to move the game's outcome from (1 , 2) to (10 , 3). B

Question 4

Use the following to answer question:
Figure 12.6        
-(Figure 12.6) Which of the panels correctly illustrates trimming the branches?

Accepted Answer

A)  panel a 
B)  panel b 
C)  panel c 
D)  panel d 
A)  panel a 
B)  panel b 
C)  panel c 
D)  panel d

Question 5

Use the following to answer questions 47-48:
Figure 12.10  
-(Figure 12.10) Payoffs are profits in millions of dollars. Should Mealy Mattress develop its antibedbug mattress if Feely Mattress promises not to develop its own antibedbug mattress?

Accepted Answer

A)  Yes, Feely's promise is credible, and Mealy's profits would increase from $6 million to $13 million. 
B)  Yes, Feely's promise is credible, and Mealy's profits would increase from $4 million to $13 million. 
C)  No, Feely's promise is not credible, so Mealy should not develop the antibedbug mattress and should earn $6 million. 
D)  No, Feely's promise is not credible, so Mealy should develop the antibedbug mattress and earn $13 million. 
A)  Yes, Feely's promise is credible, and Mealy's profits would increase from $6 million to $13 million. 
B)  Yes, Feely's promise is credible, and Mealy's profits would increase from $4 million to $13 million. 
C)  No, Feely's promise is not credible, so Mealy should not develop the antibedbug mattress and should earn $6 million. 
D)  No, Feely's promise is not credible, so Mealy should develop the antibedbug mattress and earn $13 million.

Question 6

Use the following to answer questions 10-11:
Table 12.5  
-(Table 12.5) Payoffs represent profits in millions of dollars. What is ESPN's dominant strategy?

Accepted Answer

A)  none 
B)  run the Brett Favre cover story 
C)  run the Tim Tebow cover story 
D)  run either cover story 
A)  none 
B)  run the Brett Favre cover story 
C)  run the Tim Tebow cover story 
D)  run either cover story

Question 7

The following game has _____ pure-strategy equilibrium (equilibria) and (but) _____ mixed-strategy equilibrium (equilibria).

Accepted Answer

A)  two; no 
B)  two; one 
C)  no; no 
D)  two; an infinite number of 
A)  two; no 
B)  two; one 
C)  no; no 
D)  two; an infinite number of

Question 8

Dennis and Denise are trying to decide whether to go hiking or biking this weekend. Depending on their choices they might go together and they might go apart. Their payoffs in terms of their happiness are as follows.   a. What are the pure-strategy Nash equilibria if any?
b. What is the mixed-strategy Nash equilibrium?

Accepted Answer

a. By the check method: @#IMG-DLM& There are two p

Question 9

Use the following to answer question:
Table 12.9  
-(Table 12.9) Payoffs represent profits in thousands of dollars. In this game, the Nash equilibria are:

Accepted Answer

A)  (210 , 250) and (180 , 180). 
B)  (50 , 50) and (20 , 20). 
C)  (210 , 250) and (50, 50). 
D)  (20 , 20), (50, 50), and (180 , 180). 
A)  (210 , 250) and (180 , 180). 
B)  (50 , 50) and (20 , 20). 
C)  (210 , 250) and (50, 50). 
D)  (20 , 20), (50, 50), and (180 , 180).

Question 10

Use the following to answer question:
Table 12.36  
-(Table 12.36)

Accepted Answer

a. (140 , 55)
b. The Nash equi

Question 11

Use the following to answer question:
(Table: Lemonade)  
-(Table: Lemonade)
Answer the following questions.
a. Who are the players?
b. What strategies does each player have?
c. Identify any dominant strategies.

Accepted Answer

a. The players are Sarah and A

Question 12

Imagine two friends, Mariela and Mariana, who are providing goods for a bake sale. They can take either brownies or cookies, and payoffs (the profits that they will split) are as given in the table:   a. What are the pure-strategy Nash equilibria if any?
b. What is the mixed-strategy Nash equilibrium?

Accepted Answer

a. By the check method: @#IMG-DLM& There are two p

Question 13

Consider the following game:   Find the mixed-strategy Nash equilibrium.

Accepted Answer

Since the game is symmetric, we only nee

Question 14

Use the following to answer questions 13-14:
Table 12.7  
-(Table 12.7) Payoffs represent profits in millions of dollars. What is Owens Corning's dominated strategy?

Accepted Answer

A)  no expansion 
B)  small expansion 
C)  large expansion 
D)  none 
A)  no expansion 
B)  small expansion 
C)  large expansion 
D)  none

Question 15

Consider a simultaneous game for two players. Each player has a choice between two strategies, Friend and Foe. If both players play Friend, each wins $1,000. If both play Foe, they win nothing. If one plays Foe and the other plays Friend, the Foe wins $2,000 and the Friend wins nothing. Which of the following statements is (are) TRUE?

Accepted Answer

A)  I and II 
B)  I, II, and III 
C)  II and III 
D)  II 
A)  I and II 
B)  I, II, and III 
C)  II and III 
D)  II

Question 16

Use the following to answer question:
Table 12.21  
-(Table 12.21) Payoffs represent profits in millions of dollars. Which of the following statements is (are) TRUE?

Accepted Answer

A)  I, II, and III 
B)  II and III 
C)  I and III 
D)  I 
A)  I, II, and III 
B)  II and III 
C)  I and III 
D)  I

Question 17

The following game:

Accepted Answer

A)  has no mixed-strategy equilibrium. 
B)  has a mixed-strategy equilibrium in which Row plays Up with 0.5 probability and Down with 0.5 probability. 
C)  has a mixed-strategy equilibrium in which Column plays left with 0.5 probability and right with 0.5 probability. 
D)  has a mixed-strategy equilibrium in which answers B and C both hold. 
A)  has no mixed-strategy equilibrium. 
B)  has a mixed-strategy equilibrium in which Row plays Up with 0.5 probability and Down with 0.5 probability. 
C)  has a mixed-strategy equilibrium in which Column plays left with 0.5 probability and right with 0.5 probability. 
D)  has a mixed-strategy equilibrium in which answers B and C both hold.

Question 18

Suppose that Fizzy Soda and Townie Soda must choose whether to advertise their soft drinks. In a Nash equilibrium, both firms choose to advertise and earn weekly profits of $80,000. Which of the following statements is (are) TRUE?

Accepted Answer

A)  I 
B)  II and III 
C)  I, II, and III 
D)  I and II 
A)  I 
B)  II and III 
C)  I, II, and III 
D)  I and II

Question 19

Kelly and Karl can vote for or against a public project. Their payoffs are given in the table:   a. What are the pure-strategy Nash equilibria if any?
b. What is the mixed-strategy Nash equilibrium?

Accepted Answer

a. By the check method: @#IMG-DLM& There are two p

Question 20

Use the following to answer question:
Figure 12.4  
-(Figure 12.4) The outcome of this game is:

Accepted Answer

A)  (9 , 10). 
B)  (14 , 9). 
C)  (6 , 8). 
D)  (12 , 3). 
A)  (9 , 10). 
B)  (14 , 9). 
C)  (6 , 8). 
D)  (12 , 3).

The _ model is an example of a simultaneous game, while the _ model is an example of a sequential game.

Use the following to answer question: Table 12.13 -(Table 12.13) The payoffs represent dollars. If both players follow their maximin strategy, the outcome of this game is:

Use the following to answer question: Figure 12.9 -(Figure 12.9) Brad may threaten to play strategy _ if Sly plays strategy _.

Use the following to answer question: Figure 12.6 -(Figure 12.6) Which of the panels correctly illustrates trimming the branches?

Use the following to answer questions 47-48: Figure 12.10 -(Figure 12.10) Payoffs are profits in millions of dollars. Should Mealy Mattress develop its antibedbug mattress if Feely Mattress promises not to develop its own antibedbug mattress?

Use the following to answer questions 10-11: Table 12.5 -(Table 12.5) Payoffs represent profits in millions of dollars. What is ESPN's dominant strategy?

The following game has _ pure-strategy equilibrium (equilibria) and (but) _ mixed-strategy equilibrium (equilibria).

Use the following to answer question: Table 12.9 -(Table 12.9) Payoffs represent profits in thousands of dollars. In this game, the Nash equilibria are:

Use the following to answer question: Table 12.36 -(Table 12.36)

Use the following to answer question: (Table: Lemonade) -(Table: Lemonade) Answer the following questions. a. Who are the players? b. What strategies does each player have? c. Identify any dominant strategies.

Imagine two friends, Mariela and Mariana, who are providing goods for a bake sale. They can take either brownies or cookies, and payoffs (the profits that they will split) are as given in the table: a. What are the pure-strategy Nash equilibria if any? b. What is the mixed-strategy Nash equilibrium?

Consider the following game: Find the mixed-strategy Nash equilibrium.

Use the following to answer questions 13-14: Table 12.7 -(Table 12.7) Payoffs represent profits in millions of dollars. What is Owens Corning's dominated strategy?

Use the following to answer question: Table 12.21 -(Table 12.21) Payoffs represent profits in millions of dollars. Which of the following statements is (are) TRUE?

The following game:

Suppose that Fizzy Soda and Townie Soda must choose whether to advertise their soft drinks. In a Nash equilibrium, both firms choose to advertise and earn weekly profits of $80,000. Which of the following statements is (are) TRUE?

Kelly and Karl can vote for or against a public project. Their payoffs are given in the table: a. What are the pure-strategy Nash equilibria if any? b. What is the mixed-strategy Nash equilibrium?

Use the following to answer question: Figure 12.4 -(Figure 12.4) The outcome of this game is:

Supply and Demand

Using Supply and Demand to Analyze Markets

Consumer Behavior

Individual and Market Demand

Producer Behavior

Costs

Supply in a Competitive Market

Market Power and Monopoly

Market Power and Pricing Strategies

Imperfect Competition

Factor Markets

Investment, Time, and Insurance

General Equilibrium

Asymmetric Information

Externalities and Public Goods

Behavioral and Experimental Economics

Filters

Exam 12: Game Theory

The _____ model is an example of a simultaneous game, while the _____ model is an example of a sequential game.

Use the following to answer question: Table 12.13 -(Table 12.13) The payoffs represent dollars. If both players follow their maximin strategy, the outcome of this game is:

Use the following to answer question: Figure 12.9 -(Figure 12.9) Brad may threaten to play strategy _____ if Sly plays strategy _____.

Use the following to answer question: Figure 12.6 -(Figure 12.6) Which of the panels correctly illustrates trimming the branches?

Use the following to answer questions 47-48: Figure 12.10 -(Figure 12.10) Payoffs are profits in millions of dollars. Should Mealy Mattress develop its antibedbug mattress if Feely Mattress promises not to develop its own antibedbug mattress?

Use the following to answer questions 10-11: Table 12.5 -(Table 12.5) Payoffs represent profits in millions of dollars. What is ESPN's dominant strategy?

The following game has _____ pure-strategy equilibrium (equilibria) and (but) _____ mixed-strategy equilibrium (equilibria).

Use the following to answer question: Table 12.9 -(Table 12.9) Payoffs represent profits in thousands of dollars. In this game, the Nash equilibria are:

Use the following to answer question: Table 12.36 -(Table 12.36)

Use the following to answer question: (Table: Lemonade) -(Table: Lemonade) Answer the following questions. a. Who are the players? b. What strategies does each player have? c. Identify any dominant strategies.

Consider the following game: Find the mixed-strategy Nash equilibrium.

Use the following to answer questions 13-14: Table 12.7 -(Table 12.7) Payoffs represent profits in millions of dollars. What is Owens Corning's dominated strategy?

Use the following to answer question: Table 12.21 -(Table 12.21) Payoffs represent profits in millions of dollars. Which of the following statements is (are) TRUE?

The following game:

Suppose that Fizzy Soda and Townie Soda must choose whether to advertise their soft drinks. In a Nash equilibrium, both firms choose to advertise and earn weekly profits of $80,000. Which of the following statements is (are) TRUE?

Kelly and Karl can vote for or against a public project. Their payoffs are given in the table: a. What are the pure-strategy Nash equilibria if any? b. What is the mixed-strategy Nash equilibrium?

Use the following to answer question: Figure 12.4 -(Figure 12.4) The outcome of this game is:

Supply and Demand

Using Supply and Demand to Analyze Markets

Consumer Behavior

Individual and Market Demand

Producer Behavior

Costs

Supply in a Competitive Market

Market Power and Monopoly

Market Power and Pricing Strategies

Imperfect Competition

Factor Markets

Investment, Time, and Insurance

General Equilibrium

Asymmetric Information

Externalities and Public Goods

Behavioral and Experimental Economics

Filters

The _ model is an example of a simultaneous game, while the _ model is an example of a sequential game.

Use the following to answer question: Figure 12.9 -(Figure 12.9) Brad may threaten to play strategy _ if Sly plays strategy _.

The following game has _ pure-strategy equilibrium (equilibria) and (but) _ mixed-strategy equilibrium (equilibria).