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?

One reason that it might be difficult for a player to determine his best strategy is that

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.

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

The winner's curse occurs when

-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?

-The above figure shows a payoff matrix for two firms,A and B,that must choose between a high-price strategy and a low-price strategy.The Nash equilibrium in this game

In the following game,how many Nash equilibria are there?

A payoff matrix

Dominant strategies

When both firms have dominant strategies

An auction in which the price announced by the auctioneer DESCENDS is called a(n)

-The above figure shows a payoff matrix for two firms,A and B,that must choose between a high-price strategy and a low-price strategy.Both firms setting a high price is not a Nash equilibrium because

A player's best response is

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

A strategy in which a player uses probabilities to decide which strategy to use is called a

-The above figure shows the payoff for two firms,A and B,that must each choose to sell either at a high or low price.Determine the dominant strategies for each firm (if any)and the Nash equilibria (if any).

Strategic advertising in the cola market

-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?

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