Exam 10: Monopolistic Competition, Oligopoly, and Game Theory

(Table) In the game table, where the first number listed is Jesse's payoff and the second number listed is Katy's payoff, the dominant strategies are Katy Jesse Left Right 4,8 3,7 Down 6,5 5,2

A Nash equilibrium

Repeated games tend to lead to _____ strategies.

Which of these is a downside of monopolistic competition and oligopolies?

Assume that the ruby market shares of six different countries are 30%, 25%, 20%, 15%, 6%, and 4%. However, the quality of the rubies and the mining costs vary across the six countries. Which statement accurately describes the likelihood of success for a cartel among the ruby-mining companies in the six countries?

If a player chooses not to forgive another player who cheats on an agreement, which trigger strategy is MOST likely to be used?

What are some types of games analyzed in game theory? Briefly describe three types of games used by economists.

Trade based on comparative advantage leads to a result that is a

Customers of monopolistically competitive firms will pay more for products than they would if the same products were sold in a perfectly competitive market structure. The higher price

The stability of a cartel is improved if

A teacher has a grading policy for a group assignment such that each team can earn up to 100 points, which will then be divided between four team members based on the quality of each team member's contribution to the group. This situation would be what type of game for team members?

If Rosco's Tacos competes with eight other fast-food restaurants in the same neighborhood, and two of those rival firms exit the market, then

Non-zero-sum games include the possibilities of mutually beneficial strategies.

Game theory applies in all these settings EXCEPT

Which of these will NOT help a monopolistically competitive firm generate brand loyalty?

Rice-to-Riches and Rice Pudding Palace are two shops of similar size that sell rice pudding desserts. Both shops frequently offer "Buy One, Get One Free" specials in an attempt to steal the other store's customers. But because both shops offer the same deal, they both end up earning less profit. This type of situation is BEST described as a _____ game.

Simultaneous-move and sequential-move games are analyzed the same way.

(Table) In the payoff matrix, two possible pricing strategies for one twelve-pack of Coke and Pepsi are shown. The profit payoff for each firm is also shown, where the top value in each outcome is the profit for Coke. If the two firms are able to successfully collude _____ per twelve-pack. Pepsi's Pricing Strategy per 12-pack Coke's Pricing Strategy per 12-pack \ 4 \ 2 milion \ 4 million \2 million \ 1 million \ 5 \ 1 million \ 3 million \ 4 million \ 3 million

The basic setup of a "game" requires which components?

One of the similarities between monopolistic competition and oligopolies is that they both