Exam 11: Game Theory and the Tools of Strategic Business Analysis

A refinement concept places a set of extra constraints on a Nash equilibrium in order to select among multiple equilibria if they exist or to simply make the equilibrium more plausible.

A two-person game in which player 1 divides an amount of money between the two players and the opponent either accepts or rejects the proposal is called a(n)

If one player in a game uses a mixed strategy that leaves the other player with a unique pure strategy best response, a mixed strategy equilibrium ___________ exist.

To produce Nash equilibria in mixed strategy games, we must expand the definition of a strategy to include not only the choice of an action, but also the

Strategies that define probability mixtures over all or some of the pure strategies in the game are called

Whenever a game arrives at a unique outcome using the strong or weak version of the iterative elimination of dominated strategies, we call the game

A 2 × 2 matrix game in which each player has a dominant strategy determining an equilibrium that is Pareto dominated is called the

Distinguish between strict and weak domination.

A threat that, if the game ever progresses to the point where the threat is supposed to be carried out will, in fact, be acted on is known as a(n)

If strategy 1 weakly dominates strategy 2, which of the following must be true?

The professor says to the student, "I have already told you ten times today not to text message during class. If I catch you doing it again, I will ask you to leave the classroom." In game theory terms, how would you describe the professor's statement?

A visual depiction of an extensive form game that presents the rules and payoff contingencies of the game is called a game

A game in which, when any player reaches a decision point, the player does not know all the choices of the other players who preceded is called a game of

A dominant strategy is ______________ for a player no matter what the opposing players do.

A complete plan of action for the player that tells us what choice the player should make at any node of the game tree or in any situation that might arise during the play of the game is known as

Backward induction is a description of a game of strategy that provides a detailed description of the rules of the game.

The equilibrium in a game in which all players use their dominant strategies is known as a

The expected __________ of a strategy is the probability-weighted __________ the player can expect to receive.

Exhibit 11-1 Player 2 Laft Right Tap +1,-1 -1,+1 Player 1 Battam -1,+1 +1,-1 -Refer to Exhibit 11-1. This game is shown in