Question 1

Player A and Player B are playing a prisoners' dilemma game. Which of the following statements is false?

Accepted Answer

A) If the players play the game repeatedly with each other, the players may play cooperatively. 
B) If the game is played only once, the players would not be expected to cooperate. 
C) If players play the game repeatedly with each other, they are more likely to cooperate if they are patient. 
D) If the game is played only once, the outcome minimizes total jail time. 
A) If the players play the game repeatedly with each other, the players may play cooperatively. 
B) If the game is played only once, the players would not be expected to cooperate. 
C) If players play the game repeatedly with each other, they are more likely to cooperate if they are patient. 
D) If the game is played only once, the outcome minimizes total jail time.

Question 2

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second.  
-Game 7 is an example of prisoners' dilemma. Thus, the payoff matrix contains jail sentences in terms of months. For this game,

Accepted Answer

A) Player A has a dominant strategy. 
B) Player B has a dominant strategy. 
C) both players have dominant strategies. 
D) neither player has a dominant strategy. 
A) Player A has a dominant strategy. 
B) Player B has a dominant strategy. 
C) both players have dominant strategies. 
D) neither player has a dominant strategy.

Question 3

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second.  
-In Game 2 above,

Accepted Answer

A) Player A choosing A1 and Player B choosing B1 is a Nash equilibrium. 
B) Player A choosing A1 and Player B choosing B2 is a Nash equilibrium. 
C) Player A choosing A2 and Player B choosing B1 is a Nash equilibrium. 
D) Player A choosing A2 and Player B choosing B2 is a Nash equilibrium. 
A) Player A choosing A1 and Player B choosing B1 is a Nash equilibrium. 
B) Player A choosing A1 and Player B choosing B2 is a Nash equilibrium. 
C) Player A choosing A2 and Player B choosing B1 is a Nash equilibrium. 
D) Player A choosing A2 and Player B choosing B2 is a Nash equilibrium.

Question 4

Backward induction refers to:

Accepted Answer

A) a procedure for solving a sequential-move game by starting at the beginning of the game tree and finding the optimal decision for the player at each decision point. 
B) a procedure for solving a sequential-move game by starting at the end of the game tree and finding the best response function at each decision point. 
C) a procedure for solving a sequential-move game by starting at the end of the game tree and finding the player's motives for making the decision at each decision point. 
D) a procedure for solving a sequential-move game by starting at the end of the game tree and finding the optimal decision for the player at each decision point. 
A) a procedure for solving a sequential-move game by starting at the beginning of the game tree and finding the optimal decision for the player at each decision point. 
B) a procedure for solving a sequential-move game by starting at the end of the game tree and finding the best response function at each decision point. 
C) a procedure for solving a sequential-move game by starting at the end of the game tree and finding the player's motives for making the decision at each decision point. 
D) a procedure for solving a sequential-move game by starting at the end of the game tree and finding the optimal decision for the player at each decision point.

Question 5

A game can be both Nash and Cournot at the same time.

Accepted Answer

A) True 
 B)False

Question 6

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second.  
-In Game 3 above,

Accepted Answer

A) B1 is a dominated strategy for Player B 
B) B2 is a dominated strategy for Player B 
C) B3 is a dominated strategy for Player B 
D) Player B has no dominated strategy. 
A) B1 is a dominated strategy for Player B 
B) B2 is a dominated strategy for Player B 
C) B3 is a dominated strategy for Player B 
D) Player B has no dominated strategy.

Question 7

A game situation in which there is a tension between the collective interest of all of the players and the self-interest of individual players is called a "prisoner's dilemma".

Accepted Answer

A) True 
 B)False

Question 8

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second.  
-In Game 6 above,

Accepted Answer

A) Player A choosing A1 and Player B choosing B1 is a Nash equilibrium. 
B) Player A choosing A2 and Player B choosing B2 is a Nash equilibrium. 
C) there is no Nash equilibrium. 
D) there are multiple Nash equilibria in pure strategies. 
A) Player A choosing A1 and Player B choosing B1 is a Nash equilibrium. 
B) Player A choosing A2 and Player B choosing B2 is a Nash equilibrium. 
C) there is no Nash equilibrium. 
D) there are multiple Nash equilibria in pure strategies.

Question 9

Which of the following statements is incorrect?

Accepted Answer

A) A Nash equilibrium is a situation in which each player chooses their best strategy given the strategies chosen by the other players in the game. 
B) A Cournot equilibrium is an example of a Nash equilibrium. 
C) A Bertrand equilibrium is an example of a Nash equilibrium. 
D) A Nash equilibrium maximizes the aggregate payoffs of the players of the game. 
A) A Nash equilibrium is a situation in which each player chooses their best strategy given the strategies chosen by the other players in the game. 
B) A Cournot equilibrium is an example of a Nash equilibrium. 
C) A Bertrand equilibrium is an example of a Nash equilibrium. 
D) A Nash equilibrium maximizes the aggregate payoffs of the players of the game.

Question 10

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second.  
-Suppose in Game 4 above that the players make their choices sequentially, with Player A choosing first. The Nash equilibrium in this game will be,

Accepted Answer

A) Player A choosing A1 and Player B choosing B1. 
B) Player A choosing A1 and Player B choosing B3. 
C) Player A choosing A3 and Player B choosing B1. 
D) Player A choosing A3 and Player B choosing B3. 
A) Player A choosing A1 and Player B choosing B1. 
B) Player A choosing A1 and Player B choosing B3. 
C) Player A choosing A3 and Player B choosing B1. 
D) Player A choosing A3 and Player B choosing B3.

Question 11

Player A and Player B are playing a prisoners' dilemma game. If the game is played only once, the players would not be expected to cooperate.

Accepted Answer

A) True 
 B)False

Question 12

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second.  
-Which statement below is correct concerning Game 2 above?

Accepted Answer

A) This game is an example of a prisoner's dilemma game. 
B) This game is not an example of a prisoner's dilemma game. 
C) This game has no Nash equilibrium. 
D) This game has multiple Nash equilibria in pure strategies. 
A) This game is an example of a prisoner's dilemma game. 
B) This game is not an example of a prisoner's dilemma game. 
C) This game has no Nash equilibrium. 
D) This game has multiple Nash equilibria in pure strategies.

Question 13

In a simultaneous move game with two players,

Accepted Answer

A) if neither player has a dominant strategy, we successively eliminate each player's subordinate strategy. 
B) a player chooses among two or more pure strategies according to pre-specified probabilities. 
C) if one player has a dominant strategy and the other doesn't, you can't reach a Nash equilibrium. 
D) if both players have a dominant strategy, these constitute their Nash equilibrium strategies. 
A) if neither player has a dominant strategy, we successively eliminate each player's subordinate strategy. 
B) a player chooses among two or more pure strategies according to pre-specified probabilities. 
C) if one player has a dominant strategy and the other doesn't, you can't reach a Nash equilibrium. 
D) if both players have a dominant strategy, these constitute their Nash equilibrium strategies.

Question 14

Consider a repeated prisoner's dilemma game. The likelihood of a cooperative outcome rises when:

Accepted Answer

A) they value payoffs in future periods much less than they value payoffs in the current period. 
B) Interactions between the players are frequent. 
C) Cheating is difficult to detect. 
D) The one-time gain from cheating is large in comparison to the eventual cost of cheating. 
A) they value payoffs in future periods much less than they value payoffs in the current period. 
B) Interactions between the players are frequent. 
C) Cheating is difficult to detect. 
D) The one-time gain from cheating is large in comparison to the eventual cost of cheating.

Question 15

Player A and Player B are playing a prisoners' dilemma game. If the game is played only once, the outcome minimizes total jail time.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is not true?

Accepted Answer

A) Nash games cannot have more than one equilibrium. 
B) A game can be both Cournot and Nash. 
C) A game can be both Bertrand and Nash. 
D) Whenever both players have a dominant strategy in a Nash game, that strategy will determine the outcome. 
A) Nash games cannot have more than one equilibrium. 
B) A game can be both Cournot and Nash. 
C) A game can be both Bertrand and Nash. 
D) Whenever both players have a dominant strategy in a Nash game, that strategy will determine the outcome.

Question 17

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second.  
-Game 8 shows the payoff matrix in terms of profit (in millions of dollars)for two possible strategies: advertise or do not advertise. Which of the following is a true statement?

Accepted Answer

A) Coke has a dominant strategy to not advertise. 
B) Pepsi has a dominant strategy to not advertise. 
C) The game has one Nash equilibrium. 
D) The game has multiple equilibria. 
A) Coke has a dominant strategy to not advertise. 
B) Pepsi has a dominant strategy to not advertise. 
C) The game has one Nash equilibrium. 
D) The game has multiple equilibria.

Question 18

In a Nash game, each player will have a dominant strategy.

Accepted Answer

A) True 
 B)False

Question 19

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (24-25).  
-In Game 1 above,

Accepted Answer

A) Player A has a dominant strategy. 
B) Player B has a dominant strategy. 
C) Both players have dominant strategies. 
D) Neither player has a dominant strategy. 
A) Player A has a dominant strategy. 
B) Player B has a dominant strategy. 
C) Both players have dominant strategies. 
D) Neither player has a dominant strategy.

Question 20

A Bertrand equilibrium is an example of a Nash equilibrium.

Accepted Answer

A) True 
 B)False

Player A and Player B are playing a prisoners' dilemma game. Which of the following statements is false?

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second. -Game 7 is an example of prisoners' dilemma. Thus, the payoff matrix contains jail sentences in terms of months. For this game,

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second. -In Game 2 above,

Backward induction refers to:

A game can be both Nash and Cournot at the same time.

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second. -In Game 3 above,

A game situation in which there is a tension between the collective interest of all of the players and the self-interest of individual players is called a "prisoner's dilemma".

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second. -In Game 6 above,

Which of the following statements is incorrect?

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second. -Suppose in Game 4 above that the players make their choices sequentially, with Player A choosing first. The Nash equilibrium in this game will be,

Player A and Player B are playing a prisoners' dilemma game. If the game is played only once, the players would not be expected to cooperate.

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second. -Which statement below is correct concerning Game 2 above?

In a simultaneous move game with two players,

Consider a repeated prisoner's dilemma game. The likelihood of a cooperative outcome rises when:

Player A and Player B are playing a prisoners' dilemma game. If the game is played only once, the outcome minimizes total jail time.

Which of the following statements is not true?

In a Nash game, each player will have a dominant strategy.

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (24-25). -In Game 1 above,

A Bertrand equilibrium is an example of a Nash equilibrium.

Analyzing Economic Problems

Demand and Supply Analysis

Consumer Preferences and the Concept of Utility

Consumer Choice

The Theory of Demand

Inputs and Production Functions

Costs and Cost Minimization

Cost Curves

Perfectly Competitive Markets

Competitive Markets: Applications

Monopoly and Monopsony

Capturing Surplus

Market Structure and Competition

Risk and Information

General Equilibrium Theory

Externalities and Public Goods

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Exam 14: Game Theory and Strategic Behavior

Player A and Player B are playing a prisoners' dilemma game. Which of the following statements is false?

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second. -Game 7 is an example of prisoners' dilemma. Thus, the payoff matrix contains jail sentences in terms of months. For this game,

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second. -In Game 2 above,

Backward induction refers to:

A game can be both Nash and Cournot at the same time.

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second. -In Game 3 above,

A game situation in which there is a tension between the collective interest of all of the players and the self-interest of individual players is called a "prisoner's dilemma".

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second. -In Game 6 above,

Which of the following statements is incorrect?

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second. -Suppose in Game 4 above that the players make their choices sequentially, with Player A choosing first. The Nash equilibrium in this game will be,

Player A and Player B are playing a prisoners' dilemma game. If the game is played only once, the players would not be expected to cooperate.

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second. -Which statement below is correct concerning Game 2 above?

In a simultaneous move game with two players,

Consider a repeated prisoner's dilemma game. The likelihood of a cooperative outcome rises when:

Player A and Player B are playing a prisoners' dilemma game. If the game is played only once, the outcome minimizes total jail time.

Which of the following statements is not true?

In a Nash game, each player will have a dominant strategy.

In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (24-25). -In Game 1 above,

A Bertrand equilibrium is an example of a Nash equilibrium.

Analyzing Economic Problems

Demand and Supply Analysis

Consumer Preferences and the Concept of Utility

Consumer Choice

The Theory of Demand

Inputs and Production Functions

Costs and Cost Minimization

Cost Curves

Perfectly Competitive Markets

Competitive Markets: Applications

Monopoly and Monopsony

Capturing Surplus

Market Structure and Competition

Risk and Information

General Equilibrium Theory

Externalities and Public Goods

Filters