Question 1

Games in which the players alternate moves are called:

Accepted Answer

A)   Static games.
B)   Dynamic games.
C)   Simultaneous-move games.
D)   Multistage games.
E)   Answers b and d are correct.

Question 2

Game theory attempts to explain:

Accepted Answer

A)   Profit maximization.
B)   Utility maximization.
C)   The rationing function of markets.
D)   Strategic behavior.
E)   Capital budgeting.

Question 3

-Refer to noncooperative, one-time, static game depicted in Figure 1.3. The Nash equilibrium strategy profile for this game is:
I. {A1, B1}.
II. {A1, B2}.
III. {A2, B1}.
IV. {A2, B2}.
Which of the following is correct?

Accepted Answer

A)   I only.
B)   II only.
C)   III only.
D)   I and III only.
E)   II and IV only.

Question 4

A Nash equilibrium:

Accepted Answer

A)   Results in a payoff that is no lower than any other payoff, regardless of the strategies adopted by the other players.
B)   Results in the largest payoff for both players.
C)   Occurs when each player adopts a strategy that he or she believes is the best response to the strategy adopted by a rival.
D)   Results in the best of the worst possible payoffs.
E)   Results in the lowest opportunity loss for all players.

Question 5

A collection of strategies is referred to as a:

Accepted Answer

A)   Payoff matrix.
B)   Nash equilibrium.
C)   Focal-point equilibrium.
D)   Normal-form game.
E)   Strategy profile.

Question 6

-Consider the one-time, noncooperative, static game depicted in Figure 1.2. The Nash equilibrium strategy profile for this game is:

Accepted Answer

A)   {Confess, Confess}.
B)   {Confess, Plea bargain}.
C)   {Plea bargain, Confess}.
D)   {Plea bargain, Plea bargain}.
E)   This game does not have a Nash equilibrium strategy profile.

Question 7

Strategic interaction:

Accepted Answer

A)   Describes the situation in which the behavior of an individual or group affects, and is affected by, the behavior of other individuals or groups.
B)   Is concerned with decision making involving move and countermove.
C)   Is not important in games in which players have strictly dominant strategies.
D)   Only a and b are correct.
E)   All of the above.

Question 8

A two-player, static game is one in which the players move:

Accepted Answer

A)   At different times, but without knowledge of the other player's move.
B)   At the same time, but with prior knowledge of the other player's move.
C)   Sequentially.
D)   None of the above.
E)   All of the above.

Question 9

Simultaneous-move games are also called:

Accepted Answer

A)   Noncooperative games.
B)   Dynamic games.
C)   Static games.
D)   Normal-form games.
E)   Bargaining strategies.

Question 10

A static game:

Accepted Answer

A)   Is the same thing as a simultaneous-move game in that both players move without knowledge of the other player's move.
B)   Is the same thing as a simultaneous-move game except that the players are unaware of the payoffs from alternative strategy profiles.
C)   Is the same thing as a sequential-move game.
D)   None of the above.

Question 11

The modern version of game theory can be traced to the groundbreaking work of:

Accepted Answer

A)   Milton Bradley.
B)   Rogers and Hammerstein.
C)   Von Neumann and Morgenstern.
D)   Arbuckle and Keaton.
E)   Schilling and Harsanyi.

Question 12

Which of the following assumptions about static games with complete information is incorrect:

Accepted Answer

A)   Players' strategies are common knowledge.
B)   Payoffs from alternative strategy profiles are common knowledge.
C)   Each player has a dominant strategy.
D)   Players' identities are common knowledge.
E)   Noncooperative static games are examples of the prisoner's dilemma.

Question 13

In a two-player, static game, players move:

Accepted Answer

A)   At different times, but without knowledge of a rival's move.
B)   At the same time, but with prior knowledge of a rival's move.
C)   At same time, but without prior knowledge of a rival's move.
D)   Answers a and c above.
E)   None of the above.

Question 14

-Consider the advertising game depicted in Figure 1.6 in which payoffs are in thousands of dollars. If larger payoffs are preferred, this is an example of a:
I. Game in which both players have a strictly dominant strategy.
II. Prisoner's dilemma.
III. Two-player, noncooperative, static game.
Which of the following is correct?

Accepted Answer

A)   I only.
B)   II only.
C)   III only.
D)   II and III only.
E)   I, II, and III.

Question 15

The normal-form of a one-time, static game summarizes:

Accepted Answer

A)   Players, alternative strategies, and payoffs.
B)   Players, alternative strategies, and order of moves.
C)   Alternative strategies, payoffs, and order of moves.
D)   Players, order of moves, and payoffs.
E)   Players, stages of the game, and payoffs.

Exam 1: Introduction to Game Theory

Game theory attempts to explain:

Correct Answer
verified

A Nash equilibrium:

Correct Answer
verified

A static game:

Correct Answer
verified

-Consider the one-time, noncooperative, static game depicted in Figure 1.2. The Nash equilibrium strategy profile for this game is:

Correct Answer
verified

Strategic interaction:

Correct Answer
verified

The modern version of game theory can be traced to the groundbreaking work of:

Correct Answer
verified

Simultaneous-move games are also called:

Correct Answer
verified

A collection of strategies is referred to as a:

Correct Answer
verified

A two-player, static game is one in which the players move:

Correct Answer
verified

Correct Answer
verified

The normal-form of a one-time, static game summarizes:

Correct Answer
verified

Games in which the players alternate moves are called:

Correct Answer
verified

-Refer to noncooperative, one-time, static game depicted in Figure 1.3. The Nash equilibrium strategy profile for this game is: I. {A1, B1}. II. {A1, B2}. III. {A2, B1}. IV. {A2, B2}. Which of the following is correct?

Correct Answer
verified

In a two-player, static game, players move:

Correct Answer
verified

Which of the following assumptions about static games with complete information is incorrect:

Correct Answer
verified

Exam 1: Introduction to Game Theory

Game theory attempts to explain:

Correct AnswerverifiedShow Answer

A Nash equilibrium:

Correct AnswerverifiedShow Answer

A static game:

Correct AnswerverifiedShow Answer

-Consider the one-time, noncooperative, static game depicted in Figure 1.2. The Nash equilibrium strategy profile for this game is:

Correct AnswerverifiedShow Answer

Strategic interaction:

Correct AnswerverifiedShow Answer

The modern version of game theory can be traced to the groundbreaking work of:

Correct AnswerverifiedShow Answer

Simultaneous-move games are also called:

Correct AnswerverifiedShow Answer

A collection of strategies is referred to as a:

Correct AnswerverifiedShow Answer

A two-player, static game is one in which the players move:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The normal-form of a one-time, static game summarizes:

Correct AnswerverifiedShow Answer

Games in which the players alternate moves are called:

Correct AnswerverifiedShow Answer

-Refer to noncooperative, one-time, static game depicted in Figure 1.3. The Nash equilibrium strategy profile for this game is: I. {A1, B1}. II. {A1, B2}. III. {A2, B1}. IV. {A2, B2}. Which of the following is correct?

Correct AnswerverifiedShow Answer

In a two-player, static game, players move:

Correct AnswerverifiedShow Answer

Which of the following assumptions about static games with complete information is incorrect:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified