Exam 2: Noncooperative, One-Time, Static Games

In the text application "The Good, the Bad, and the Ugly," suppose that Tuco's gun had been loaded in the final scene of the movie the "ecstacy of gold." Blondie's dominant strategy would be to:

-Refer to Figure 2.3, which represents a simultaneous-move, non-cooperative, one-time game. A Nash equilibrium occurs at the strategy profile:

-Refer to the noncooperative, one-time, static game depicted in Figure 2.12. Rah-Rah and7th Heaven are convenience store chains that are considering opening a franchise in downtown Pawtucket, or just off Interstate 95. Monthly payoffs are in thousands of dollars. If larger payoffs are preferred, which convenience store chain has astrictly dominant strategy?

-Suppose that an industry consists of two firms: Magna Corporation and Summa Corporation. Each firm produces an identical product. Magna and Summa are considering whether to expand (None) their production capacity for the next operating period. If the decision is to expand, the two firms must decide whether the expansion should be Moderate or Extensive. The tradeoff confronting each firm is that expansion will result in greater output that will lower the selling price of the product in the market. The normal form of this game is summarized in Figure 2.16. If larger payoffs are preferred, Magna has _____ dominated strategy or strategies.

-Refer to Figure 2.7, which summarizes the payoffs in thousands of dollars to two firms in a duopolistic industry arising from alternative pricing strategies. Assume that this is a simultaneous-move, cooperative, one-time game. The Nash equilibrium strategy profile for this game is:

-Refer to the noncooperative, one-time, static game depicted in Figure 2.12. Rah-Rah and 7th Heaven are convenience store chains that are considering opening a franchise in downtown Pawtucket, or just off Interstate 95. Monthly payoffs are in thousands of dollars. If both stores adopt a secure strategy, what is the equilibrium strategy profile for this game?

-The Snake River Company and the Loblolly River Company are considering their respective advertising campaigns. Figure 2.9 summarizes the payoffs (in thousands of dollars) from alternative advertising strategies. If larger payoffs are preferred, what is the Nash equilibrium strategy profile for this game is:

-Suppose that Nature randomly chooses between a sunny day or a rainy with a 50 percent chance of either. Penelope must decide whether or not to carry an umbrella. Penelope's minimax regret strategy is:

-Suppose that an industry consists of two firms: Magna Corporation and Summa Corporation. Each firm produces an identical product. Magna and Summa are considering whether to expand (None) their production capacity for the next operating period. If the decision is to expand, the two firms must decide whether the expansion should be Moderate or Extensive. The tradeoff confronting each firm is that expansion will result in greater output that will lower the selling price of the product in the market. The normal form of this game is summarized in Figure 2.16. If larger payoffs are preferred, the Nash equilibrium strategy profile(s) for this game is (are): I. {None, None}. II. {Moderate, Moderate}. III. {Extensive, Extensive}. IV. {Extensive, None}. V. {None, Extensive}. Which of the following is correct?

Fred and Ethel are contestants on the game show Truth or Consequences. Fred and Ethel were introduced to each other moments before the show began. The game begins with the two contestants answering a trivia question. If they answer correctly, they are sent to separate isolation chambers where they must choose Truth or Consequences. They are told that if they both choose Truth then they will share equally a $10,000 prize. If one chooses Truth and the other chooses Consequences, the player choosing Consequences gets the entire $10,000 while the player choosing Truth gets nothing. If they both choose Consequences, they each get $100 as a parting gift. If both players use a minimax regret decision rule, the strategy profile for this game is:

-Suppose that an industry consists of two firms: Magna Corporation and Summa Corporation. Each firm produces an identical product. Magna and Summa are considering whether to expand (None) their production capacity for the next operating period. If the decision is to expand, the two firms must decide whether the expansion should be Moderate or Extensive. The tradeoff confronting each firm is that expansion will result in greater output that will lower the selling price of the product in the market. The normal form of this game is summarized in Figure 2.16. If larger payoffs are preferred, which firm has a strictly dominant strategy?

-Consider the simultaneous-move game depicted in Figure 2.20. What is the Nash equilibrium strategy profile for this game?

-Consider the static game depicted in Figure 2.19. The Nash equilibrium strategy profile for this game is: I. {A, F}. II. {B, D}. III. {C, E}. IV. {B, F}. V. {D, F}. Which of the following is correct?

Players who adopt a secure strategy:

-Consider the noncooperative, one-time, static game depicted in Figure 2.6. For what values of x is Strategy 2 dominant for player A?

-The Pie-Eye and Red-Nose Beer Companies are considering their upcoming advertising campaigns. This noncooperative, one-time, static game is depicted in Figure 2.8, which summarizes the expected increase in profits from alternative advertising strategy profiles for both companies. What is the Nash equilibrium strategy profile for this game?

-Consider the noncooperative, one-time, static game depicted in Figure 2.22. Which player has a _____ dominated strategy.

Suppose that both players in a non-cooperative, one-time, static game have a strictly dominant strategy. The strategy profile for this game is a: I. Nash equilibrium. II. Strictly-dominant-strategy equilibrium. III. Market equilibrium. Which of the following is correct?

Fred and Ethel are contestants on the game show Truth or Consequences. Fred and Ethel were introduced to each other moments before the show began. The game begins with the two contestants answering a trivia question equally a $10,000 prize. If one chooses Truth and the other chooses Consequences, th. If they answer correctly, they are sent to separate isolation chambers where they must choose Truth or Consequences. They are told that if they both choose Truth then they will share e player choosing Consequences gets the entire $10,000 while the player choosing Truth gets nothing. If they both choose Consequences, they each get $100 as a parting gift. The Nash equilibrium strategy profile for this game is:

In a two-player, noncooperative, static game, it is usually assumed that: