Question 1

The so-called Prisoner's Dilemma:

Accepted Answer

A) is a one-shot game with ongoing interaction between competitors. 
B) is a repeated game. 
C) has no dominant strategy. 
D) exists because both would be better off if they could be assured that the other would confess. 
A) is a one-shot game with ongoing interaction between competitors. 
B) is a repeated game. 
C) has no dominant strategy. 
D) exists because both would be better off if they could be assured that the other would confess. C

Question 2

In a simultaneous-move game, each player:

Accepted Answer

A) is aware of all prior moves. 
B) need not understand the benefits from revealing useful information. 
C) adopts the look ahead and extrapolate back principle. 
D) moves without any direct knowledge of moves made by other players. 
A) is aware of all prior moves. 
B) need not understand the benefits from revealing useful information. 
C) adopts the look ahead and extrapolate back principle. 
D) moves without any direct knowledge of moves made by other players. D

Question 3

A game in which joint action is favoured is called a:

Accepted Answer

A) zero-sum game. 
B) cooperative game. 
C) positive-sum game. 
D) negative-sum game. 
A) zero-sum game. 
B) cooperative game. 
C) positive-sum game. 
D) negative-sum game. B

Question 4

Market penetration pricing by newcomers is apt to be most successful when:

Accepted Answer

A) network externalities lead to significant first-mover advantages. 
B) established and thriving firms enjoy customer lock-in effects. 
C) aggressive predatory pricing strategies are necessary to limit competitor entry. 
D) applied in competitive markets. 
A) network externalities lead to significant first-mover advantages. 
B) established and thriving firms enjoy customer lock-in effects. 
C) aggressive predatory pricing strategies are necessary to limit competitor entry. 
D) applied in competitive markets.

Question 5

A system of behaviour that remains the same until another player takes some course of action that precipitates a different response is:

Accepted Answer

A) a finitely repeated game with known duration. 
B) a finitely repeated game of unknown duration. 
C) an infinitely repeated game. 
D) a trigger strategy. 
A) a finitely repeated game with known duration. 
B) a finitely repeated game of unknown duration. 
C) an infinitely repeated game. 
D) a trigger strategy.

Question 6

A competitive strategy to set less than monopoly prices in an effort to deter entry by new competitors is called:

Accepted Answer

A) market penetration pricing. 
B) limit pricing. 
C) predatory pricing. 
D) none of these. 
A) market penetration pricing. 
B) limit pricing. 
C) predatory pricing. 
D) none of these.

Question 7

A secure strategy guarantees:

Accepted Answer

A) the best result regardless of the actions taken by other players. 
B) the best possible outcome given the worst possible scenario. 
C) that no player can improve their own payoff by unilaterally changing their own strategy. 
D) that rivals will not be able to predict strategic moves. 
A) the best result regardless of the actions taken by other players. 
B) the best possible outcome given the worst possible scenario. 
C) that no player can improve their own payoff by unilaterally changing their own strategy. 
D) that rivals will not be able to predict strategic moves.

Question 8

Game theory is a general framework to help decision making when:

Accepted Answer

A) facing irrational behaviour by others. 
B) players are unable to anticipate the equilibrium calculations of other players. 
C) payoffs depend on actions taken by others. 
D) cannot be anticipated. 
A) facing irrational behaviour by others. 
B) players are unable to anticipate the equilibrium calculations of other players. 
C) payoffs depend on actions taken by others. 
D) cannot be anticipated.

Question 9

The desirability of maintaining a reputation for selling high-quality goods and services is minimal in the case of:

Accepted Answer

A) a finitely repeated game with known duration. 
B) a finitely repeated game of unknown duration. 
C) an infinitely repeated game. 
D) none of these. 
A) a finitely repeated game with known duration. 
B) a finitely repeated game of unknown duration. 
C) an infinitely repeated game. 
D) none of these.

Question 10

A unique ability to create, distribute, or service products valued by customers is called:

Accepted Answer

A) a first-mover advantage. 
B) a competitive advantage. 
C) a comparative advantage. 
D) economy of scale. 
A) a first-mover advantage. 
B) a competitive advantage. 
C) a comparative advantage. 
D) economy of scale.

The so-called Prisoner's Dilemma:

In a simultaneous-move game, each player:

A game in which joint action is favoured is called a:

Market penetration pricing by newcomers is apt to be most successful when:

A system of behaviour that remains the same until another player takes some course of action that precipitates a different response is:

A competitive strategy to set less than monopoly prices in an effort to deter entry by new competitors is called:

A secure strategy guarantees:

Game theory is a general framework to help decision making when:

The desirability of maintaining a reputation for selling high-quality goods and services is minimal in the case of:

A unique ability to create, distribute, or service products valued by customers is called:

Nature and Scope of Managerial Economics

Economic Optimization

Demand and Supply

Demand Analysis

Demand Estimation

Forecasting

Production Analysis and Compensation Policy

Cost Analysis and Estimation

Linear Programming

Competitive Markets

Performance and Strategy in Competitive Markets

Monopoly and Monopsony

Monopolistic Competition and Oligopoly

Pricing Practices

Risk Analysis

Capital Budgeting

Organization Structure and Corporate Governance

Government in the Market Economy

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Exam 14: Game Theory and Competitive Strategy

The so-called Prisoner's Dilemma:

In a simultaneous-move game, each player:

A game in which joint action is favoured is called a:

Market penetration pricing by newcomers is apt to be most successful when:

A system of behaviour that remains the same until another player takes some course of action that precipitates a different response is:

A competitive strategy to set less than monopoly prices in an effort to deter entry by new competitors is called:

A secure strategy guarantees:

Game theory is a general framework to help decision making when:

The desirability of maintaining a reputation for selling high-quality goods and services is minimal in the case of:

A unique ability to create, distribute, or service products valued by customers is called:

Nature and Scope of Managerial Economics

Economic Optimization

Demand and Supply

Demand Analysis

Demand Estimation

Forecasting

Production Analysis and Compensation Policy

Cost Analysis and Estimation

Linear Programming

Competitive Markets

Performance and Strategy in Competitive Markets

Monopoly and Monopsony

Monopolistic Competition and Oligopoly

Pricing Practices

Risk Analysis

Capital Budgeting

Organization Structure and Corporate Governance

Government in the Market Economy

Filters