Exam 12: Game Theory and Business Strategy

After analyzing his opponent, a tennis player decides to serve 10% of his serves to the left, 50% of his serves to the right, and 40% of his serves at the body of his opponent. This illustrates a

-The above figure shows a payoff matrix for two firms, A and B, that must choose between selling basic computers or advanced computers. Firm B's dominant strategy

When firms select the solution that is better for all parties, the ________ is satisfied.

Not all games with two or more Nash equilibria can be solved with pre-play communication because

In an English auction

-The above figure shows a payoff matrix for two firms, A and B, that must choose between selling basic computers or advanced computers. Which of the following is a Nash equilibrium?

A maximin strategy

Firms in an oligopolistic market ________ because they are ________.

Communication between players prior to the start of a game that does NOT affect the payoffs is called

When a bargaining solution is reached

In a sealed-bid, second-price auction, you should bid

In a first-price sealed-bid auction, the winner pays

In a bargaining game, players

"Cheap talk" is considered cheap because

The figure shows the payoffs to two airlines, A and B, of serving a particular route. Is there a Nash equilibrium? What is it? Explain.

If decision makers have limited ability to calculate profits from all possible combinations of options, they are said to have

In a second-price auction, the winner pays

If a game contains private information, then

When neither player has a dominant strategy

If a game has a pure strategy Nash equilibrium then