Exam 14: 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?

Assume a firm lowers price below marginal cost to deter entry.

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

A strategy is dominant if

-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?

-The above figure shows the payoff to two computer manufacturers,A and B,deciding the type of computer to be released in a foreign country.If firm A chooses its strategy first,then

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

If an incumbent cannot commit and faces an identical potential entrant with relatively high fixed costs that are below the level where entry is blockaded,the incumbent will

A sale in which property or a service is sold to the highest bidder is called a(n)

A mixed strategy may

-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?

-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?

Repeated games are conducive to

In a simultaneous game where both players prefer doing the opposite of what the opponent does,a Nash equilibrium does not exist.

An incumbent announces it will significantly increase output in the next period,but only has contracts for the amount produced this period.The announcement is a

In a repeated game,cooperation can be enforced by the use of a trigger strategy that

In the Stackelberg model,the leader has a first-mover advantage because it

Which of the following is a simultaneous decision game?

-The above figure shows the payoff matrix facing an incumbent firm and a potential entrant.If the fixed cost of entry were to increase,which of the following would occur?

How can a firm be made better off by limiting its options?