Question 1

In the ultimatum experiment,what are the usual outcomes?

Accepted Answer

A) Proposer proposes to give the minimum positive amount to the responder in all the rounds. 
B) Proposer and responder are rational all the time. 
C) Proposer proposes to give about 30~40% of total amount to the responders. 
D) Proposer proposes to give 60~70% of total amount to the responders 
A) Proposer proposes to give the minimum positive amount to the responder in all the rounds. 
B) Proposer and responder are rational all the time. 
C) Proposer proposes to give about 30~40% of total amount to the responders. 
D) Proposer proposes to give 60~70% of total amount to the responders

Question 2

Consider the following sequential move game:   
a.If z = 0,find any subgame perfect NE.
b.For what values of z will M occur in the subgame perfect equilibrium?

Accepted Answer

The answer of Consider the following sequential move game: ...

Question 3

-The above figure shows the payoffs to two firms deciding to open a gasoline station in an isolated town.If firm A decides first,what will happen? If there is a $60 fee to enter this market,what will happen?

Accepted Answer

If firm A decides first,it will enter.En

Question 4

If only one firm operates in a market,and a potential entrant is blockaded from entering the market,then the incumbent firm must

Accepted Answer

A) have acted to prevent entry. 
B) be pricing where price equals marginal cost. 
C) be a natural monopoly. 
D) be the Stackelberg leader. 
A) have acted to prevent entry. 
B) be pricing where price equals marginal cost. 
C) be a natural monopoly. 
D) be the Stackelberg leader.

Question 5

Suppose market demand is p = 10 - Q.Firms have a fixed cost of five and no marginal cost.If firm A is the incumbent,can it deter the entry of its rival,firm B?

Accepted Answer

Firm B's reaction function is @#IMG-DLM& = 5 - (1/

Question 6

The Internet auction site eBay is an example of a(n)

Accepted Answer

A) Sealed Bid Auction. 
B) Second-Price Auction. 
C) English Auction. 
D) both A and B. 
A) Sealed Bid Auction. 
B) Second-Price Auction. 
C) English Auction. 
D) both A and B.

Question 7

-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?

Accepted Answer

A) Firm A has a dominant strategy. 
B) Firm B has a dominant strategy. 
C) Neither firm entering is a Nash equilibrium. 
D) The outcome of the game is unpredictable. 
A) Firm A has a dominant strategy. 
B) Firm B has a dominant strategy. 
C) Neither firm entering is a Nash equilibrium. 
D) The outcome of the game is unpredictable.

Question 8

Collusion is more likely to occur when

Accepted Answer

A) there is fear of punishment for not colluding. 
B) there is a known finite time horizon. 
C) there are large gains to be made by cheating on an agreement. 
D) the game lasts only one period. 
A) there is fear of punishment for not colluding. 
B) there is a known finite time horizon. 
C) there are large gains to be made by cheating on an agreement. 
D) the game lasts only one period.

Question 9

-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

Accepted Answer

A) is to make basic computers. 
B) is to make advanced computers. 
C) is to adopt firm A's strategy. 
D) does not exist in this game. 
A) is to make basic computers. 
B) is to make advanced computers. 
C) is to adopt firm A's strategy. 
D) does not exist in this game.

Question 10

-The above figure shows the payoff matrix for two firms,A and B,selecting an advertising budget.The firms must choose between a high advertising budget and a low advertising budget.A Nash equilibrium is that

Accepted Answer

A) firm A selects a high advertising budget and firm B selects a low advertising budget. 
B) firm A selects a low advertising budget and firm B selects a high advertising budget. 
C) both firms select a high advertising budget. 
D) both firms select a low advertising budget. 
A) firm A selects a high advertising budget and firm B selects a low advertising budget. 
B) firm A selects a low advertising budget and firm B selects a high advertising budget. 
C) both firms select a high advertising budget. 
D) both firms select a low advertising budget.

Question 11

-The above figure shows the payoff matrix for two firms,A and B,choosing to produce a basic computer or an advanced computer.Which of the following is a Nash equilibrium?

Accepted Answer

A) Firm A produces an advanced computer,and firm B produces a basic computer. 
B) Both firms produce advanced computers. 
C) Both firms produce basic computers. 
D) None of the above. 
A) Firm A produces an advanced computer,and firm B produces a basic computer. 
B) Both firms produce advanced computers. 
C) Both firms produce basic computers. 
D) None of the above.

Question 12

Suppose market demand is p = 10 - Q.Firms incur no cost of production.If firm A is the incumbent,can it deter the entry of its rival,firm B?

Accepted Answer

Firm B's reaction function is q_B = 5 - (1

Question 13

Explain why to some game theorists,the idea of mixed strategies is appealing,and to others it is implausible.

Accepted Answer

Sometimes the pure Nash equilibria call

Question 14

The following is a simplified duopoly model of competition between two firms.Firms simultaneously choose the quantity of outputs to produce,and then profits are realized.Each firm is restricted to producing 25,35,50 or 100 units of output.The details of how the payoffs are derived are unimportant because payoffs are all given in the table below.
Firm 2
   
Find the Nash equilibrium(s)in the game.

Accepted Answer

The answer of The following is a simplified duopoly model...

Question 15

-The above figure shows the payoff matrix for two firms,A and B,selecting an advertising budget.The firms must choose between a high advertising budget and a low advertising budget.Firm B's dominant strategy

Accepted Answer

A) does not exist. 
B) is to copy firm A. 
C) is to select a high advertising budget. 
D) is to select a low advertising budget. 
A) does not exist. 
B) is to copy firm A. 
C) is to select a high advertising budget. 
D) is to select a low advertising budget.

Question 16

What aspects of a game are specified by "the rules of the game"?

Accepted Answer

A) timing of players' moves 
B) payoffs 
C) information available to each player 
D) All of the above 
A) timing of players' moves 
B) payoffs 
C) information available to each player 
D) All of the above

Question 17

When neither player has a dominant strategy,

Accepted Answer

A) game theory will not provide information. 
B) no Nash-Equilibrium exists. 
C) at least one Nash-Equilibrium exists. 
D) the game cannot be analyzed. 
A) game theory will not provide information. 
B) no Nash-Equilibrium exists. 
C) at least one Nash-Equilibrium exists. 
D) the game cannot be analyzed.

Question 18

-The above figure shows the payoff matrix for two firms,A and B,choosing to produce a basic computer or an advanced computer.The dominant strategy for firm A is

Accepted Answer

A) producing an advanced computer. 
B) producing a basic computer. 
C) copying firm B's action. 
D) Firm A does not have a dominant strategy. 
A) producing an advanced computer. 
B) producing a basic computer. 
C) copying firm B's action. 
D) Firm A does not have a dominant strategy.

Question 19

The individual with the highest valuation of the good will win in which of the following auctions?

Accepted Answer

A) English Auction 
B) Dutch Auction 
C) Sealed Bid Auction 
D) All of the above. 
A) English Auction 
B) Dutch Auction 
C) Sealed Bid Auction 
D) All of the above.

Question 20

All Nash equilibria consist of Dominant Strategies

Accepted Answer

A) True 
 B)False

In the ultimatum experiment,what are the usual outcomes?

Consider the following sequential move game: a.If z = 0,find any subgame perfect NE. b.For what values of z will M occur in the subgame perfect equilibrium?

-The above figure shows the payoffs to two firms deciding to open a gasoline station in an isolated town.If firm A decides first,what will happen? If there is a $60 fee to enter this market,what will happen?

If only one firm operates in a market,and a potential entrant is blockaded from entering the market,then the incumbent firm must

Suppose market demand is p = 10 - Q.Firms have a fixed cost of five and no marginal cost.If firm A is the incumbent,can it deter the entry of its rival,firm B?

The Internet auction site eBay is an example of a(n)

-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?

Collusion is more likely to occur when

-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

-The above figure shows the payoff matrix for two firms,A and B,selecting an advertising budget.The firms must choose between a high advertising budget and a low advertising budget.A Nash equilibrium is that

-The above figure shows the payoff matrix for two firms,A and B,choosing to produce a basic computer or an advanced computer.Which of the following is a Nash equilibrium?

Suppose market demand is p = 10 - Q.Firms incur no cost of production.If firm A is the incumbent,can it deter the entry of its rival,firm B?

Explain why to some game theorists,the idea of mixed strategies is appealing,and to others it is implausible.

-The above figure shows the payoff matrix for two firms,A and B,selecting an advertising budget.The firms must choose between a high advertising budget and a low advertising budget.Firm B's dominant strategy

What aspects of a game are specified by "the rules of the game"?

When neither player has a dominant strategy,

-The above figure shows the payoff matrix for two firms,A and B,choosing to produce a basic computer or an advanced computer.The dominant strategy for firm A is

The individual with the highest valuation of the good will win in which of the following auctions?

All Nash equilibria consist of Dominant Strategies

Introduction

Supply and Demand

A Consumers Constrained Choice

Demand

Consumer Welfare and Policy Analysis

Firms and Production

Costs

Competitive Firms and Markets

Properties and Applications of the Competitive Model

General Equilibrium and Economic Welfare

Monopoly and Monopsony

Pricing and Advertising

Oligopoly and Monopolistic Competition

Factor Markets

Uncertainty

Property Rights, Externalities, Rivalry, and Exclusion

Asymmetric Information

Contracts and Moral Hazards

Filters

Exam 13: Game Theory

In the ultimatum experiment,what are the usual outcomes?

Consider the following sequential move game: a.If z = 0,find any subgame perfect NE. b.For what values of z will M occur in the subgame perfect equilibrium?

-The above figure shows the payoffs to two firms deciding to open a gasoline station in an isolated town.If firm A decides first,what will happen? If there is a $60 fee to enter this market,what will happen?

If only one firm operates in a market,and a potential entrant is blockaded from entering the market,then the incumbent firm must

Suppose market demand is p = 10 - Q.Firms have a fixed cost of five and no marginal cost.If firm A is the incumbent,can it deter the entry of its rival,firm B?

The Internet auction site eBay is an example of a(n)

-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?

Collusion is more likely to occur when

-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

-The above figure shows the payoff matrix for two firms,A and B,selecting an advertising budget.The firms must choose between a high advertising budget and a low advertising budget.A Nash equilibrium is that

-The above figure shows the payoff matrix for two firms,A and B,choosing to produce a basic computer or an advanced computer.Which of the following is a Nash equilibrium?

Suppose market demand is p = 10 - Q.Firms incur no cost of production.If firm A is the incumbent,can it deter the entry of its rival,firm B?

Explain why to some game theorists,the idea of mixed strategies is appealing,and to others it is implausible.

-The above figure shows the payoff matrix for two firms,A and B,selecting an advertising budget.The firms must choose between a high advertising budget and a low advertising budget.Firm B's dominant strategy

What aspects of a game are specified by "the rules of the game"?

When neither player has a dominant strategy,

-The above figure shows the payoff matrix for two firms,A and B,choosing to produce a basic computer or an advanced computer.The dominant strategy for firm A is

The individual with the highest valuation of the good will win in which of the following auctions?

All Nash equilibria consist of Dominant Strategies

Introduction

Supply and Demand

A Consumers Constrained Choice

Demand

Consumer Welfare and Policy Analysis

Firms and Production

Costs

Competitive Firms and Markets

Properties and Applications of the Competitive Model

General Equilibrium and Economic Welfare

Monopoly and Monopsony

Pricing and Advertising

Oligopoly and Monopolistic Competition

Factor Markets

Uncertainty

Property Rights, Externalities, Rivalry, and Exclusion

Asymmetric Information

Contracts and Moral Hazards

Filters