Question 1

The modern version of the game theory can be traced to the groundbreaking work of:

Accepted Answer

A)  Konami and Atari. 
B)  Martin and Lewis. 
C)  Siegfried and Roy. 
D)  Von Neumann and Morgenstern. 
E)  Erickson and Defoe. 
A)  Konami and Atari. 
B)  Martin and Lewis. 
C)  Siegfried and Roy. 
D)  Von Neumann and Morgenstern. 
E)  Erickson and Defoe. D

Question 2

Players in simultaneous-move games with complete information know their rival's:

Accepted Answer

A)  Strategies, but not the payoffs from alternative strategy profiles. 
B)  Strategies, payoffs from alternative strategy profiles, and always move at the same time. 
C)  Strategies, payoffs from alternative strategy profiles, but do not necessarily move at the same time. 
D)  None of the above 
A)  Strategies, but not the payoffs from alternative strategy profiles. 
B)  Strategies, payoffs from alternative strategy profiles, and always move at the same time. 
C)  Strategies, payoffs from alternative strategy profiles, but do not necessarily move at the same time. 
D)  None of the above B

Question 3

-Refer to Figure 1.1, which depicts a noncooperative, simultaneous-move, one-time game in which larger payoffs are preferred. Which player has a strictly dominant strategy?

Accepted Answer

A)  Player A 
B)  Player B 
C)  Both players 
D)  Neither player 
E)  Cannot be answered without additional information. 
A)  Player A 
B)  Player B 
C)  Both players 
D)  Neither player 
E)  Cannot be answered without additional information. C

Question 4

In a simultaneous-move game:

Accepted Answer

A)  The players move in turns. 
B)  Players can project forward and reason backward. 
C)  Players can learn something about the intentions of rivals by observing prior moves. 
D)  Players are unable to learn anything about the intentions of rivals by observing prior moves. 
E)  None of the above. 
A)  The players move in turns. 
B)  Players can project forward and reason backward. 
C)  Players can learn something about the intentions of rivals by observing prior moves. 
D)  Players are unable to learn anything about the intentions of rivals by observing prior moves. 
E)  None of the above.

Question 5

-Refer to Figure 1.1, which depicts a noncooperative, simultaneous-move, one-time gamein which larger payoffs are preferred. The Nash equilibrium strategy profile for this game is:

Accepted Answer

A)  {A1, B1}. 
B)  {A1, B2}. 
C)  {A2, B1}. 
D)  {A2, B2}. 
E)  Answers a and d are correct. 
A)  {A1, B1}. 
B)  {A1, B2}. 
C)  {A2, B1}. 
D)  {A2, B2}. 
E)  Answers a and d are correct.

Question 6

-Consider the one-time, noncooperative, static game depicted in Figure 1.2. Which player has a strictly dominant strategy?

Accepted Answer

A)  Clarence 
B)  Darrow 
C)  Both players 
D)  Neither player 
E)  Cannot be answered without additional information. 
A)  Clarence 
B)  Darrow 
C)  Both players 
D)  Neither player 
E)  Cannot be answered without additional information.

Question 7

An assumption about static games with complete information is that:

Accepted Answer

A)  Players do not know the payoffs until after they have moved. 
B)  Players have different information about the payoff matrix. 
C)  Players are rational in that moves are based on the best possible payoffs. 
D)  The players' identities are required before making a move. 
E)  All of the above are correct. 
A)  Players do not know the payoffs until after they have moved. 
B)  Players have different information about the payoff matrix. 
C)  Players are rational in that moves are based on the best possible payoffs. 
D)  The players' identities are required before making a move. 
E)  All of the above are correct.

Question 8

An example of a simultaneous-move game is:

Accepted Answer

A)  Chess. 
B)  Checkers. 
C)  Rock-scissors-paper. 
D)  Mah Jongg. 
E)  Stratego. 
A)  Chess. 
B)  Checkers. 
C)  Rock-scissors-paper. 
D)  Mah Jongg. 
E)  Stratego.

Question 9

-Consider the advertising game depicted in Figure 1.6 in which payoffs are in thousands of dollars. If larger payoffs are preferred, the Nash equilibrium strategy profile for this game is:

Accepted Answer

A)  {Magazines, Newspapers}. 
B)  {Magazines, Television}. 
C)  {Radio, Newspapers}. 
D)  {Radio, Television}. 
A)  {Magazines, Newspapers}. 
B)  {Magazines, Television}. 
C)  {Radio, Newspapers}. 
D)  {Radio, Television}.

Question 10

The prisoner's dilemma describes a strategic situation in which:

Accepted Answer

A)  It is in the best interest of all players to cooperate. 
B)  Each player has a incentive to adopt a strategy that results in a less than optimal outcome. 
C)  There is a conflict between individual and joint incentives. 
D)  All of the above are correct. 
E)  None of the above are correct. 
A)  It is in the best interest of all players to cooperate. 
B)  Each player has a incentive to adopt a strategy that results in a less than optimal outcome. 
C)  There is a conflict between individual and joint incentives. 
D)  All of the above are correct. 
E)  None of the above are correct.

Question 11

-Consider the pricing game depicted in Figure 1.5 in which payoffs are in thousands of dollars. If larger payoffs are preferred, this is an example of a:
I. Game in which both players have a strictly dominant strategy.
II. Prisoner's dilemma.
III. Two-player, noncooperative, static game.
Which of the following is correct?

Accepted Answer

A)  I only. 
B)  II only. 
C)  III only. 
D)  II and III only. 
E)  I, II, and III. 
A)  I only. 
B)  II only. 
C)  III only. 
D)  II and III only. 
E)  I, II, and III.

Question 12

A key assumption underlying noncooperative, static games is that the players:

Accepted Answer

A)  Behave rationally. 
B)  Act in the best interest of their rivals. 
C)  Are indifferent to payoffs in cooperative and noncooperative games. 
D)  Always adopt strategies that lead to "fair" outcomes. 
E)  None of the above. 
A)  Behave rationally. 
B)  Act in the best interest of their rivals. 
C)  Are indifferent to payoffs in cooperative and noncooperative games. 
D)  Always adopt strategies that lead to "fair" outcomes. 
E)  None of the above.

Question 13

In game theory, a strategy:

Accepted Answer

A)  Consists of any collection of moves and countermoves. 
B)  Is a decision rule that defines a player's moves. 
C)  Is the same thing as a multistage game. 
D)  Must be strictly dominant. 
E)  Answers a and b are correct. 
A)  Consists of any collection of moves and countermoves. 
B)  Is a decision rule that defines a player's moves. 
C)  Is the same thing as a multistage game. 
D)  Must be strictly dominant. 
E)  Answers a and b are correct.

Question 14

-Refer to noncooperative, one-time, static game depicted in Figure 1.3. If larger payoffs are preferred, which player has a strictly dominant strategy?

Accepted Answer

A)  Player A 
B)  Player B 
C)  Both players 
D)  Neither player 
E)  Cannot be answered without additional information. 
A)  Player A 
B)  Player B 
C)  Both players 
D)  Neither player 
E)  Cannot be answered without additional information.

Question 15

A _____ occurs when each player adopts a strategy is the best response to the strategy adopted by a rival.

Accepted Answer

A)  Bayesian equilibrium. 
B)  Von Neuman equilibrium. 
C)  Focal-point equilibrium. 
D)  Nash equilibrium. 
E)  Minimax equilibrium. 
A)  Bayesian equilibrium. 
B)  Von Neuman equilibrium. 
C)  Focal-point equilibrium. 
D)  Nash equilibrium. 
E)  Minimax equilibrium.

Question 16

-Refer to Figure 1.4 in which the payoffs are in millions of dollars. Suppose that Tsunami Corporation and Cyclone Company contemplating a change in their advertising strategies. Which player has a strictly dominant strategy?

Accepted Answer

A)  Tsunami 
B)  Cyclone 
C)  Both Tsunami and Cyclone 
D)  Neither Tsunami nor Cyclone 
A)  Tsunami 
B)  Cyclone 
C)  Both Tsunami and Cyclone 
D)  Neither Tsunami nor Cyclone

Question 17

A Nash equilibrium:

Accepted Answer

A)  Always results in the best possible payoff for all players. 
B)  Occurs when each player adopts a strategy that is the best response to a strategy adopted by a rival. 
C)  Occurs when a player cannot improve his or her payoff by switching strategies. 
D)  Both b and c are correct. 
E)  None of the above. 
A)  Always results in the best possible payoff for all players. 
B)  Occurs when each player adopts a strategy that is the best response to a strategy adopted by a rival. 
C)  Occurs when a player cannot improve his or her payoff by switching strategies. 
D)  Both b and c are correct. 
E)  None of the above.

Question 18

-Consider the pricing game depicted in Figure 1.5 in which payoffs are in thousands ofdollars. If larger payoffs are preferred, the Nash equilibrium strategy profile for this game is:

Accepted Answer

A)  {High price, High price}. 
B)  {Low price, Low price}. 
C)  {High price, Low price}. 
D)  {Low price, High price}. 
A)  {High price, High price}. 
B)  {Low price, Low price}. 
C)  {High price, Low price}. 
D)  {Low price, High price}.

Question 19

The prisoner's dilemma describes a strategic situation in which each of the following statements is correct except:

Accepted Answer

A)  There is a conflict between each player's self interest and the combined interests of both players. 
B)  Each player has an incentive not to confess. 
C)  Cooperation results in the best outcome for both players. 
D)  Each player has an incentive to adopt a strategy that results in a less than optimal outcome. 
A)  There is a conflict between each player's self interest and the combined interests of both players. 
B)  Each player has an incentive not to confess. 
C)  Cooperation results in the best outcome for both players. 
D)  Each player has an incentive to adopt a strategy that results in a less than optimal outcome.

Question 20

-Refer to Figure 1.4 in which the payoffs are in millions of dollars. Suppose that Tsunami Corporation and Cyclone Company contemplating a change in their advertising strategies. The Nash equilibrium strategy profile for this game is:

Accepted Answer

A)  {Newspapers, Magazines}. 
B)  {Television, Magazines}. 
C)  {Newspapers, Radio}. 
D)  {Television, Radio}. 
A)  {Newspapers, Magazines}. 
B)  {Television, Magazines}. 
C)  {Newspapers, Radio}. 
D)  {Television, Radio}.

The modern version of the game theory can be traced to the groundbreaking work of:

Players in simultaneous-move games with complete information know their rival's:

-Refer to Figure 1.1, which depicts a noncooperative, simultaneous-move, one-time game in which larger payoffs are preferred. Which player has a strictly dominant strategy?

In a simultaneous-move game:

-Refer to Figure 1.1, which depicts a noncooperative, simultaneous-move, one-time gamein which larger payoffs are preferred. The Nash equilibrium strategy profile for this game is:

-Consider the one-time, noncooperative, static game depicted in Figure 1.2. Which player has a strictly dominant strategy?

An assumption about static games with complete information is that:

An example of a simultaneous-move game is:

-Consider the advertising game depicted in Figure 1.6 in which payoffs are in thousands of dollars. If larger payoffs are preferred, the Nash equilibrium strategy profile for this game is:

The prisoner's dilemma describes a strategic situation in which:

A key assumption underlying noncooperative, static games is that the players:

In game theory, a strategy:

-Refer to noncooperative, one-time, static game depicted in Figure 1.3. If larger payoffs are preferred, which player has a strictly dominant strategy?

A _____ occurs when each player adopts a strategy is the best response to the strategy adopted by a rival.

-Refer to Figure 1.4 in which the payoffs are in millions of dollars. Suppose that Tsunami Corporation and Cyclone Company contemplating a change in their advertising strategies. Which player has a strictly dominant strategy?

A Nash equilibrium:

-Consider the pricing game depicted in Figure 1.5 in which payoffs are in thousands ofdollars. If larger payoffs are preferred, the Nash equilibrium strategy profile for this game is:

The prisoner's dilemma describes a strategic situation in which each of the following statements is correct except:

-Refer to Figure 1.4 in which the payoffs are in millions of dollars. Suppose that Tsunami Corporation and Cyclone Company contemplating a change in their advertising strategies. The Nash equilibrium strategy profile for this game is:

Noncooperative, One-Time, Static Games

Focal-Point and Evolutionary Equilibria

Infinitely-Repeated, Static Games

Finitely-Repeated, Static Games

Mixing Pure Strategies

Static Games With Continuous Strategies

Imperfect Competition

Perfect Competition and Monopoly

Strategic Trade Policy

Dynamic Games With Complete

Bargaining

Pure Strategies With Uncertain Payoffs

Torts and Contracts

Auctions

Dynamic Games With Incomplete Information

Filters

Exam 1: Introduction to Game Theory

The modern version of the game theory can be traced to the groundbreaking work of:

Players in simultaneous-move games with complete information know their rival's:

-Refer to Figure 1.1, which depicts a noncooperative, simultaneous-move, one-time game in which larger payoffs are preferred. Which player has a strictly dominant strategy?

In a simultaneous-move game:

-Refer to Figure 1.1, which depicts a noncooperative, simultaneous-move, one-time gamein which larger payoffs are preferred. The Nash equilibrium strategy profile for this game is:

-Consider the one-time, noncooperative, static game depicted in Figure 1.2. Which player has a strictly dominant strategy?

An assumption about static games with complete information is that:

An example of a simultaneous-move game is:

-Consider the advertising game depicted in Figure 1.6 in which payoffs are in thousands of dollars. If larger payoffs are preferred, the Nash equilibrium strategy profile for this game is:

The prisoner's dilemma describes a strategic situation in which:

A key assumption underlying noncooperative, static games is that the players:

In game theory, a strategy:

-Refer to noncooperative, one-time, static game depicted in Figure 1.3. If larger payoffs are preferred, which player has a strictly dominant strategy?

A _____ occurs when each player adopts a strategy is the best response to the strategy adopted by a rival.

-Refer to Figure 1.4 in which the payoffs are in millions of dollars. Suppose that Tsunami Corporation and Cyclone Company contemplating a change in their advertising strategies. Which player has a strictly dominant strategy?

A Nash equilibrium:

-Consider the pricing game depicted in Figure 1.5 in which payoffs are in thousands ofdollars. If larger payoffs are preferred, the Nash equilibrium strategy profile for this game is:

The prisoner's dilemma describes a strategic situation in which each of the following statements is correct except:

-Refer to Figure 1.4 in which the payoffs are in millions of dollars. Suppose that Tsunami Corporation and Cyclone Company contemplating a change in their advertising strategies. The Nash equilibrium strategy profile for this game is:

Noncooperative, One-Time, Static Games

Focal-Point and Evolutionary Equilibria

Infinitely-Repeated, Static Games

Finitely-Repeated, Static Games

Mixing Pure Strategies

Static Games With Continuous Strategies

Imperfect Competition

Perfect Competition and Monopoly

Strategic Trade Policy

Dynamic Games With Complete

Bargaining

Pure Strategies With Uncertain Payoffs

Torts and Contracts

Auctions

Dynamic Games With Incomplete Information

Filters