Question 1

Pure strategy

Accepted Answer

A)   is a specific choice of a strategy from the player's possible strategies in the game, whereas a mixed strategy is a choice between quantity and price optimization.
B)   is a specific choice of a strategy outside of the player's possible strategies in the game, whereas a mixed strategy is a choice among two or more pure strategies according to pre-specified probabilities.
C)   is a specific choice of a strategy outside of the player's possible strategies in the game, whereas a mixed strategy is a choice between quantity and price optimization.
D)   is a specific choice of a strategy from the player's possible strategies in the game, whereas a mixed strategy is a choice among two or more pure strategies according to pre-specified probabilities.E) None of the above
F) A) and C)

Question 2

**Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (25-26) . 
-*In Game 1 above,

Accepted Answer

A)   Player A has a dominant strategy.
B)   Player B has a dominant strategy.
C)   Both players have dominant strategies.
D)   Neither player has a dominant strategy.E) All of the above
F) A) and B)

Question 3

Which of the following statements is not true?

Accepted Answer

A)   Nash games cannot have more than one equilibrium.
B)   A game can be both Cournot and Nash.
C)   A game can be both Bertrand and Nash.
D)   Whenever both players have a dominant strategy in a Nash game, that strategy will determine the outcome.E) A) and B)
F) A) and C)

Question 4

**Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (50-51) . 
-*In Game 9 above,

Accepted Answer

A)   There is one Nash equilibrium.
B)   There are two Nash equilibria.
C)   There are three Nash equilibria.
D)   There are four Nash equilibria.E) A) and B)
F) A) and C)

Question 5

**Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (30-33) . 
-*In Game 3 above,

Accepted Answer

A)   B1 is a dominated strategy for Player B
B)   B2 is a dominated strategy for Player B
C)   B3 is a dominated strategy for Player B
D)   Player B has no dominated strategy.E) None of the above
F) B) and C)

Question 6

The prisoners' dilemma shows that in a Nash equilibrium

Accepted Answer

A)   neither player can have a better result than the other.
B)   sometimes players do not reach the optimal outcome.
C)   only an irrational strategy will lead to an outcome worse than the optimal outcome.
D)   each player acting independently will lead to the optimal outcome.E) A) and B)
F) A) and C)

Question 7

**Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (37-41) . 
-*In Game 5 above,if the players move sequentially with Player B choosing first,the Nash equilibrium will be

Accepted Answer

A)   Player A choosing A1 and Player B choosing B1.
B)   Player A choosing A1 and Player B choosing B2.
C)   Player A choosing A2 and Player B choosing B1.
D)   Player A choosing A2 and Player B choosing B2.E) A) and D)
F) None of the above

Question 8

Consider a repeated prisoner's dilemma game.The likelihood of a cooperative outcome rises when

Accepted Answer

A)   they value payoffs in future periods much less than they value payoffs in the current period.
B)   Interactions between the players are frequent.
C)   Cheating is difficult to detect.
D)   The one-time gain from cheating is large in comparison to the eventual cost of cheating.E) C) and D)
F) All of the above

Question 9

Evaluate the truthfulness of the following statements I.A game situation in which there is a tension between the collective interest of all of the players and the self-interest of individual players is called a "prisoner's dilemma".
II.The Cournot and Bertrand models are examples of "prisoner's dilemma" games.

Accepted Answer

A)   Both I and II are true.
B)   Both I and II are false.
C)   I is true; II is false.
D)   I is false; II is true.E) A) and B)
F) A) and C)

Question 10

**Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (27-29) . 
-*Which statement below is correct concerning Game 2 above?

Accepted Answer

A)   This game is an example of a prisoner's dilemma game.
B)   This game is not an example of a prisoner's dilemma game.
C)   This game has no Nash equilibrium.
D)   This game has multiple Nash equilibria in pure strategies.E) None of the above
F) A) and C)

Question 11

**Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (50-51) . 
-*Game 9 has the structure of a

Accepted Answer

A)   prisoner's dilemma.
B)   sequential game.
C)   game of chicken.
D)   tit-for-tat gameE) All of the above
F) B) and D)

Exam 14: Game Theory and Strategic Behavior

**Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (50-51) . -*Game 9 has the structure of a

Correct Answer
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**Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (25-26) . -*In Game 1 above,

Correct Answer
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Which of the following statements is not true?

Correct Answer
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**Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (37-41) . -*In Game 5 above,if the players move sequentially with Player B choosing first,the Nash equilibrium will be

Correct Answer
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The prisoners' dilemma shows that in a Nash equilibrium

Correct Answer
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**Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (30-33) . -*In Game 3 above,

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**Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (27-29) . -*Which statement below is correct concerning Game 2 above?

Correct Answer
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**Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (50-51) . -*In Game 9 above,

Correct Answer
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Pure strategy

Correct Answer
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Consider a repeated prisoner's dilemma game.The likelihood of a cooperative outcome rises when

Correct Answer
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Exam 14: Game Theory and Strategic Behavior

**Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (50-51) . -*Game 9 has the structure of a

Correct AnswerverifiedShow Answer

**Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (25-26) . -*In Game 1 above,

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Which of the following statements is not true?

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**Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (37-41) . -*In Game 5 above,if the players move sequentially with Player B choosing first,the Nash equilibrium will be

Correct AnswerverifiedShow Answer

The prisoners' dilemma shows that in a Nash equilibrium

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**Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (30-33) . -*In Game 3 above,

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**Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (27-29) . -*Which statement below is correct concerning Game 2 above?

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**Reference: In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (50-51) . -*In Game 9 above,

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Pure strategy

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Consider a repeated prisoner's dilemma game.The likelihood of a cooperative outcome rises when

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