Exam 12: Game Theory and Business Strategy

-The above figure shows the payoff to two airlines, A and B, of serving a particular route. If the two airlines must decide simultaneously, what happens if the government imposes a $20 per firm tax on firms that service this route?

If the managers of your firm have bounded rationality, then

Which of the following is a simultaneous decision game?

Common knowledge in game theory

-The above figure shows the payoff to two airlines, A and B, of serving a particular route. If the two airlines must decide simultaneously, and the government imposes a $20 per firm tax on firms that service this route, which of the following maximizes the firms' joint profits?

A strategy is dominant if

One possible source of inefficiency in bargaining is

Which of the following statements is TRUE?

When both firms have dominant strategies

A payoff matrix

A player's best response is

A Nash equilibrium occurs when

What is the primary difference between a mixed strategy and a pure strategy?

Dominant strategies

In the above table, if the players use a maximin strategy

In a static game, firms

-The above figure shows the payoff to two airlines, A and B, of serving a particular route. If the two airlines must decide simultaneously, which one of the following statements is TRUE?

In the reality TV show Storage Wars, people bid on the contents of repossessed storage units without being able to evaluate the contents. This is an example of a ________ auction.

If the payoff to the United States to pursuing nuclear weapons is 100 if the USSR does not pursue nuclear weapons and 50 if the USSR does, and the payoff to the USSR to pursuing nuclear weapons is 80 if the USA doesn't pursue nuclear weapons and 30 if the USA does, what is the non-cooperative equilibrium?

-The above figure shows the payoff to two airlines, A and B, of serving a particular route. If the two airlines must decide simultaneously, what will happen if the government offers a $30 subsidy to airlines that serve this route?