Question 1

In a bargaining solution, a player's net surplus is

Accepted Answer

A) the amount of total surplus minus any deadweight loss. 
B) the difference between what the player receives in the final bargain minus what she would have gotten from the disagreement point. 
C) the amount of consumer surplus she receives minus any deadweight loss. 
D) always maximized. 
A) the amount of total surplus minus any deadweight loss. 
B) the difference between what the player receives in the final bargain minus what she would have gotten from the disagreement point. 
C) the amount of consumer surplus she receives minus any deadweight loss. 
D) always maximized.

Question 2

The term prisoners' dilemma refers to a game in which

Accepted Answer

A) there are no Nash equilibria. 
B) there are no dominant strategies. 
C) the payoff from both players playing their dominant strategies is the same for each player. 
D) the payoff from both players playing their dominant strategies is not the highest payoff possible. 
A) there are no Nash equilibria. 
B) there are no dominant strategies. 
C) the payoff from both players playing their dominant strategies is the same for each player. 
D) the payoff from both players playing their dominant strategies is not the highest payoff possible.

Question 3

-The above figure shows the payoff to two airlines, A and B, of serving a particular route. If the two airlines must decide simultaneously, what happens if the government imposes a $20 per firm tax on firms that service this route?

Accepted Answer

A) Neither firm has a dominant strategy. 
B) Not entering is a dominant strategy for both firms. 
C) Neither firm entering is a Nash equilibrium. 
D) Only firm A will enter. 
A) Neither firm has a dominant strategy. 
B) Not entering is a dominant strategy for both firms. 
C) Neither firm entering is a Nash equilibrium. 
D) Only firm A will enter.

Question 4

A single-period duopoly firm can choose output level A or B. The firm decides it will produce level A regardless of what the other firm produces. This decision may occur because

Accepted Answer

A) producing the output level A is a dominant strategy. 
B) this firm has simply decided to always produce at level A. 
C) Both A and B are possible. 
D) None of the above. 
A) producing the output level A is a dominant strategy. 
B) this firm has simply decided to always produce at level A. 
C) Both A and B are possible. 
D) None of the above.

Question 5

When firms select the solution that is better for all parties, the ________ is satisfied.

Accepted Answer

A) Nash equilibrium condition 
B) Pareto Criterion 
C) coordination game requirement 
D) pure strategy requirement 
A) Nash equilibrium condition 
B) Pareto Criterion 
C) coordination game requirement 
D) pure strategy requirement

Question 6

The individual with the highest valuation of the good will win in which of the following auctions?

Accepted Answer

A) English Auction 
B) Dutch Auction 
C) Sealed Bid Auction 
D) All of the above. 
A) English Auction 
B) Dutch Auction 
C) Sealed Bid Auction 
D) All of the above.

Question 7

A player's best response is

Accepted Answer

A) the strategy that maximizes his payoff given what he thinks the other player will do. 
B) a dominant strategy. 
C) impossible to find when there isn't a Nash equilibrium. 
D) a way to avoid the prisoners' dilemma. 
A) the strategy that maximizes his payoff given what he thinks the other player will do. 
B) a dominant strategy. 
C) impossible to find when there isn't a Nash equilibrium. 
D) a way to avoid the prisoners' dilemma.

Question 8

A payoff matrix

Accepted Answer

A) shows the payoffs (i.e. bribes)required to government officials for firms undertaking specific actions. 
B) details the actions each firm takes. 
C) shows the payoffs to each firm for each possible outcome. 
D) is optional in game theory. 
A) shows the payoffs (i.e. bribes)required to government officials for firms undertaking specific actions. 
B) details the actions each firm takes. 
C) shows the payoffs to each firm for each possible outcome. 
D) is optional in game theory.

Question 9

In auctions, the winner always pays a price equal to the highest (his)bid.

Accepted Answer

A) True 
 B)False

Question 10

A Nash equilibrium occurs when

Accepted Answer

A) players choose their best strategy given the strategies chosen by others. 
B) the efficient allocation of resources is achieved by setting marginal revenue equal to marginal cost. 
C) a monopolist is forced to produce the efficient level of output. 
D) oligopolists cooperate with each other. 
A) players choose their best strategy given the strategies chosen by others. 
B) the efficient allocation of resources is achieved by setting marginal revenue equal to marginal cost. 
C) a monopolist is forced to produce the efficient level of output. 
D) oligopolists cooperate with each other.

In a bargaining solution, a player's net surplus is

The term prisoners' dilemma refers to a game in which

-The above figure shows the payoff to two airlines, A and B, of serving a particular route. If the two airlines must decide simultaneously, what happens if the government imposes a $20 per firm tax on firms that service this route?

A single-period duopoly firm can choose output level A or B. The firm decides it will produce level A regardless of what the other firm produces. This decision may occur because

When firms select the solution that is better for all parties, the ________ is satisfied.

The individual with the highest valuation of the good will win in which of the following auctions?

A player's best response is

A payoff matrix

In auctions, the winner always pays a price equal to the highest (his)bid.

A Nash equilibrium occurs when

Introduction

Supply and Demand

Empirical Methods for Demand Analysis

Consumer Choice

Production

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Government and Business

Global Business

Filters

Exam 12: Game Theory and Business Strategy

In a bargaining solution, a player's net surplus is

The term prisoners' dilemma refers to a game in which

-The above figure shows the payoff to two airlines, A and B, of serving a particular route. If the two airlines must decide simultaneously, what happens if the government imposes a $20 per firm tax on firms that service this route?

A single-period duopoly firm can choose output level A or B. The firm decides it will produce level A regardless of what the other firm produces. This decision may occur because

When firms select the solution that is better for all parties, the ________ is satisfied.

The individual with the highest valuation of the good will win in which of the following auctions?

A player's best response is

A payoff matrix

In auctions, the winner always pays a price equal to the highest (his)bid.

A Nash equilibrium occurs when

Introduction

Supply and Demand

Empirical Methods for Demand Analysis

Consumer Choice

Production

Costs

Firm Organization and Market Structure

Competitive Firms and Markets

Monopoly

Pricing With Market Power

Oligopoly and Monopolistic Competition

Strategies Over Time

Managerial Decision-Making Under Uncertainty

Asymmetric Information

Government and Business

Global Business

Filters