Question 1

Figure 3.1 : Homer and Marge have been accused of committing a crime, and the payoff matrix below represents the payoffs associated with confessing to the crime and denying having committed the crime. 
-Refer to Figure 3.1. If Marge and Homer both deny committing the crime, what is Marge's payout?

Accepted Answer

A)   1 year
B)   2 years
C)   7 years
D)   15 years B

Question 2

In an assurance game, each Nash equilibria offer identical payouts to any particular player.

Accepted Answer

A) True 
 B)False  False

Question 3

Figure 3.1 : Homer and Marge have been accused of committing a crime, and the payoff matrix below represents the payoffs associated with confessing to the crime and denying having committed the crime. 
-Refer to Figure 3.1. If Homer confesses to the crime and Marge does not, what is Homer's payout?

Accepted Answer

A)   1 year
B)   2 years
C)   7 years
D)   15 years A

Question 4

Figure 3.1 : Homer and Marge have been accused of committing a crime, and the payoff matrix below represents the payoffs associated with confessing to the crime and denying having committed the crime. 
-Refer to Figure 3.1. What is the number of outcomes which represent Nash equilibria in this game?

Accepted Answer

A)   1
B)   2
C)   3
D)   4

Question 5

If only one player in a game has a dominant strategy, there can be no Nash equilibrium.

Accepted Answer

A) True 
 B)False

Question 6

Figure 3.4 :  Serena and Austin are spending their 5th wedding anniversary on the remote island of Wabo Wabo. One afternoon, Serena decides to go exploring around the island while Austin chooses to go snorkeling. Earlier in the day, they both decided to get together at dusk to watch the sunset, but neglected to agree where to meet. They both know that the two prime spots for watching the sun go down are at the northernmost point of the island and at the southernmost point of the island. They each have time to only go to one end of the island and they cannot communicate with each other because there is no cell service on the island. Neither Serena nor Austin care about at which end of the island they view the sunset. They only care that they are together when they do. The payoffs for each player are shown in the above payoff matrix.
-Refer to Figure 3.4. The odds of Serena and Austin meeting randomly to view the sunset are

Accepted Answer

A)   0%.
B)   25%.
C)   50%.
D)   100%.

Question 7

A game in which both players want to coordinate, but each player prefers coordinating on a different outcome is called

Accepted Answer

A)   an assurance game.
B)   a pure coordination game.
C)   a battle of the sexes game.
D)   a chicken game.

Question 8

The characteristic of games whereby the outcome of the game depends not only on what you do but on what the other players do in response is called

Accepted Answer

A)   strategic interaction.
B)   mutual interdependence.
C)   optimal choice analysis.
D)   decision theory.

Question 9

All of the following are characteristics of a chicken game except

Accepted Answer

A)   each player has a tough strategy and a weak strategy.
B)   coordination occurs when both players either play their tough strategies or both players play their weak strategies.
C)   each player prefers the Nash equilibrium corresponding to his or her tough strategy.
D)   each player prefers a different Nash equilibrium.

Question 10

In a battle of the sexes game, each player prefers a different Nash equilibrium.

Accepted Answer

A) True 
 B)False

Question 11

Figure 3.1 : Homer and Marge have been accused of committing a crime, and the payoff matrix below represents the payoffs associated with confessing to the crime and denying having committed the crime. 
-Refer to Figure 3.1. A Nash Equilibrium occurs where

Accepted Answer

A)   Homer confesses to committing the crime and Marge denies committing the crime.
B)   Marge confesses to committing the crime and Homer denies committing the crime.
C)   Homer and Marge both confess to committing the crime.
D)   Homer and Marge both deny committing the crime.

Question 12

Figure 3.4 :  Serena and Austin are spending their 5th wedding anniversary on the remote island of Wabo Wabo. One afternoon, Serena decides to go exploring around the island while Austin chooses to go snorkeling. Earlier in the day, they both decided to get together at dusk to watch the sunset, but neglected to agree where to meet. They both know that the two prime spots for watching the sun go down are at the northernmost point of the island and at the southernmost point of the island. They each have time to only go to one end of the island and they cannot communicate with each other because there is no cell service on the island. Neither Serena nor Austin care about at which end of the island they view the sunset. They only care that they are together when they do. The payoffs for each player are shown in the above payoff matrix.
-Refer to Figure 3.4. A Nash equilibrium is achieved at which cell(s) in the payoff matrix?

Accepted Answer

A)   only at (North, North) 
B)   only at (South, South) 
C)   at both (North, North)  and at (South, South) 
D)   There is no Nash equilibrium.

Question 13

Figure 3.5: 
-Refer to Figure 3.5.Answer the following questions about the game represented in the figure:
a. What type of game is represented by the payoff matrix?
b. Does Donald have a dominant strategy, and if so, what is it?
c. Does Donald have a dominant strategy, and if so, what is it?
d. What is the cooperative solution?
e. What is the Nash equilibrium?

Accepted Answer

The answer of Figure 3.5: 
-Refer to Figure 3.5.Answer the...

Question 14

A strategy which is universally best, regardless of the strategy chosen by others, is called a

Accepted Answer

A)   Nash strategy.
B)   dominant strategy.
C)   mutually interdependent strategy.
D)   zero-sum strategy.

Question 15

Which of the following is not a characteristic of an assurance game?

Accepted Answer

A)   Neither player has a dominant strategy.
B)   Nash equilibria exist at every outcome where the players successfully coordinate.
C)   Each of the Nash equilibria offers identical payoffs to any particular player.
D)   The payoff for coordinating is higher than the payoff for not coordinating.

Question 16

In a pure coordination game, Nash equilibria exist at every outcome where the players successfully coordinate.

Accepted Answer

A) True 
 B)False

Question 17

Leona and Bernie have committed a crime. If Leona denies committing the crime, Bernie can lower his penalty from 5 years to 2 years by confessing to the crime. If Leona confesses to the crime, Bernie can lower his penalty from 18 years to 7 years by confessing to the crime. Based on this information, we know with certainty that

Accepted Answer

A)   Bernie's dominant strategy is to deny the crime.
B)   Bernie has no dominant strategy.
C)   Bernie's dominant strategy is to confess to the crime.
D)   Bernie's dominant strategy is to confess to the crime only if Leona denies committing the crime.

Question 18

Figure 3.1 : Homer and Marge have been accused of committing a crime, and the payoff matrix below represents the payoffs associated with confessing to the crime and denying having committed the crime. 
-Refer to Figure 3.1. If Marge confesses to the crime and Homer does not, what is Homer's payout?

Accepted Answer

A)   1 year
B)   2 years
C)   7 years
D)   15 years

Question 19

Figure 3.4 :  Serena and Austin are spending their 5th wedding anniversary on the remote island of Wabo Wabo. One afternoon, Serena decides to go exploring around the island while Austin chooses to go snorkeling. Earlier in the day, they both decided to get together at dusk to watch the sunset, but neglected to agree where to meet. They both know that the two prime spots for watching the sun go down are at the northernmost point of the island and at the southernmost point of the island. They each have time to only go to one end of the island and they cannot communicate with each other because there is no cell service on the island. Neither Serena nor Austin care about at which end of the island they view the sunset. They only care that they are together when they do. The payoffs for each player are shown in the above payoff matrix.
-Refer to Figure 3.4. Serena's dominant strategy is to play ________ and Austin's dominant strategy is to play ________.

Accepted Answer

A)   North; North
B)   South; South
C)   North; South
D)   Neither Serena nor Austin has a dominant strategy.

Question 20

Figure 3.6: 
-Refer to Figure 3.6.Answer the following questions about the game represented in the figure:
a. What type of game is represented by the payoff matrix?
b. Does Terrance have a dominant strategy, and if so, what is it?
c. Does Phillip have a dominant strategy, and if so, what is it?
d. At what outcome or outcomes do the players coordinate?
e. Are there any Nash equilibria, and if so, what, are they?

Accepted Answer

The answer of Figure 3.6: 
-Refer to Figure 3.6.Answer the...

Exam 3: Basic Game Theory: Games Between Two Players

Figure 3.1 : Homer and Marge have been accused of committing a crime, and the payoff matrix below represents the payoffs associated with confessing to the crime and denying having committed the crime. -Refer to Figure 3.1. If Marge and Homer both deny committing the crime, what is Marge's payout?

In an assurance game, each Nash equilibria offer identical payouts to any particular player.

Figure 3.1 : Homer and Marge have been accused of committing a crime, and the payoff matrix below represents the payoffs associated with confessing to the crime and denying having committed the crime. -Refer to Figure 3.1. If Homer confesses to the crime and Marge does not, what is Homer's payout?

Figure 3.1 : Homer and Marge have been accused of committing a crime, and the payoff matrix below represents the payoffs associated with confessing to the crime and denying having committed the crime. -Refer to Figure 3.1. What is the number of outcomes which represent Nash equilibria in this game?

If only one player in a game has a dominant strategy, there can be no Nash equilibrium.

A game in which both players want to coordinate, but each player prefers coordinating on a different outcome is called

The characteristic of games whereby the outcome of the game depends not only on what you do but on what the other players do in response is called

All of the following are characteristics of a chicken game except

In a battle of the sexes game, each player prefers a different Nash equilibrium.

Figure 3.1 : Homer and Marge have been accused of committing a crime, and the payoff matrix below represents the payoffs associated with confessing to the crime and denying having committed the crime. -Refer to Figure 3.1. A Nash Equilibrium occurs where

A strategy which is universally best, regardless of the strategy chosen by others, is called a

Which of the following is not a characteristic of an assurance game?

In a pure coordination game, Nash equilibria exist at every outcome where the players successfully coordinate.

Figure 3.1 : Homer and Marge have been accused of committing a crime, and the payoff matrix below represents the payoffs associated with confessing to the crime and denying having committed the crime. -Refer to Figure 3.1. If Marge confesses to the crime and Homer does not, what is Homer's payout?