Exam 18: Game Theory and Strategic Choices

Use the table with data for Maria and Jose to answer the question. If Jose charges $8, Maria should charge _____. If Jose charges $4, Maria should charge _____. $\text { Table: Maria and Jose Produce Strawberry Jam }$ Jose charges \ 8 per jar. Jose charges \ 4 per jar. Maria charges \ 8 per jar. Maria earns \ 200 , and Jose earns \ 180. Maria earns \ 50 , and Jose earns \ 280. Maria charges \ 4 per jar. Maria earns \ 300 , and Jose earns \ 40. Maria earns \ 180 , and Jose earns \ 150.

An equilibrium in which the choice that each player makes is a best response to the choices other players are making is the definition of a:

A payoff table lists all possible _____, with a row for each _____ and a column for _____.

When an individual's best choice may depend on what other people choose and other people's best choices may depend on what the individual chooses, then _____ is the science that is useful to help the decision makers analyze their options.

When a game player "looks forward," she:

An equilibrium:

(Figure: Oligopoly Pricing Strategy in Wireless TV Market II) Use Figure: Oligopoly Pricing Strategy in Wireless TV Market II. The BEST response for Sling: ​

(Figure: Payoff Matrix for the United States and Canada) Use Figure: Payoff Matrix for the United States and Canada. Suppose that the United States and Canada both produce quinoa, and each country can earn profit if output is limited and the price of quinoa is high. The Nash equilibrium combination is for the United States to produce a _____ output and Canada to produce a _____ output. ​

A simultaneous game is one in which:

(Figure: Nike and Reebok Sales) Use Figure: Nike and Reebok Sales. Reebok and Nike must decide whether to have a sale or not, based on the potential economic profits shown in the table. The BEST response for Nike is: ​

Choose the term that is used for analyzing by this process: "Start by analyzing the last period of the game. Use this to figure what will happen in the second-to-last period, and keep reasoning backward until you can see all the consequences that follow from today's decision."

(Figure: Oligopoly Pricing Strategy in Wireless TV Market II) Use Figure: Oligopoly Pricing Strategy in Wireless TV Market II. If Spectrum followed a high-price strategy one period but found that Sling followed a noncooperative low-price strategy, and Spectrum decided to lower prices for the next month, one would say that Spectrum is following a: ​

When playing a simultaneous game, one way to get ahead is to:

When a player faces the same strategic interaction a fixed number of times, the player is engaged in _____ game.

Suppose Northwest Airlines follows a Grim trigger strategy in setting its prices. If Delta raises its domestic fares, then Northwest may:

(Scenario: Payoff Matrix for Two Computer Manufacturers) Use Scenario: Payoff Matrix for Two Computer Manufacturers. Dell has: ​ Scenario: Payoff Matrix for Two Computer Manufacturers ​ The following table provides the payoff matrix for two firms, Dell and HP. They are the only two firms in the industry and can either compete or cooperate with each other, with the following profit levels reflecting their actions. ​

In a finitely repeated game, both players have an incentive to _____ during the last round.

A Grim Trigger strategy is to:

How is being a player in an indefinitely repeated game different from being a player in a finitely repeated game?

When players will be better off if they coordinate their choices, there is a: