Question 1

According to the figure shown,Adidas:

Accepted Answer

A)   should charge a low price, regardless of what Nike chooses to do.
B)   should charge a high price, regardless of what Nike chooses to do.
C)   does not have a dominant strategy.
D)   should take the first-mover advantage and charge a low price.E) A) and B)
F) A) and C)

Question 2

By committing to reduce one's options during a sequential game,a player can force a change in his opponents' strategy,and that commitment strategy results in a:

Accepted Answer

A)   payoff that he likely would have gotten anyway.
B)   cooperative equilibrium.
C)   payoff that would otherwise be out of reach.
D)   negative-negative outcome.E) All of the above
F) A) and D)

Question 3

This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts.Both companies are trying to decide whether or not to expand in an area.The area can handle only one of them expanding,and whoever expands will cause the other to lose some business.If they both expand,the market will be saturated,and neither company will do well.The payoffs are the additional profits (or losses) they will earn.
According to the figure shown,Starbucks:

Accepted Answer

A)   has a dominant strategy to expand.
B)   has a dominant strategy not to expand.
C)   has first-mover advantage.
D)   should wait to see what Dunkin Donuts is going to do.E) A) and B)
F) A) and D)

Question 4

A dominant strategy:

Accepted Answer

A)   exists in every game.
B)   is the best one to follow no matter what strategy other players choose.
C)   is always the same for all players of a game.
D)   awards the highest achievable payoff in a game.E) A) and B)
F) B) and C)

Question 5

First-mover advantage is:

Accepted Answer

A)   most advantageous in a prisoner's dilemma-type game.
B)   very important in one-round sequential games.
C)   likely to lead to a positive-positive outcome.
D)   None of these statements is true.E) A) and C)
F) A) and D)

Question 6

This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade.They both will enjoy a higher grade when more effort is put into the project,but they also get pleasure from goofing off and not working on the project.The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
The game in the figure shown is a version of:

Accepted Answer

A)   the prisoner's dilemma.
B)   the first-mover advantage.
C)   a sequential game.
D)   a repeated game.E) B) and D)
F) A) and B)

Question 7

When a strategy is the best one to follow no matter what strategy other players choose,it is called a:

Accepted Answer

A)   golden decision.
B)   dominated strategy.
C)   dominant strategy.
D)   zero-sum strategy.E) A) and D)
F) None of the above

Question 8

This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade.They both will enjoy a higher grade when more effort is put into the project,but they also get pleasure from goofing off and not working on the project.The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.
The outcome of the game in the figure shown predicts that Joe will earn utility of:

Accepted Answer

A)   5.
B)   7.
C)   9.
D)   13.E) None of the above
F) A) and C)

Question 9

Two players who are both playing tit-for-tat can quickly find their way toward:

Accepted Answer

A)   lasting cooperation.
B)   noncooperative outcomes for the remaining rounds.
C)   a cycle of cooperation and noncooperation, similar to a business cycle.
D)   None of these statements is true.E) C) and D)
F) None of the above

Question 10

In real life,people's behavior is constrained by:

Accepted Answer

A)   laws of nature.
B)   legislated rules of society.
C)   costs of various actions.
D)   All of these are rules that constrain people's behavior.E) All of the above
F) None of the above

Question 11

In games,strategies are:

Accepted Answer

A)   the outcomes players want to achieve.
B)   the same for everyone to achieve the same goal.
C)   the plans of action that players follow to achieve their goals.
D)   All of these statements are true.E) A) and B)
F) A) and C)

Question 12

According to the figure shown:

Accepted Answer

A)   there is no stable equilibrium to the game.
B)   both players will act in their own self-interest and get a stable, but less than optimum, equilibrium.
C)   both players will act in their own self-interest and get an optimum equilibrium that is stable.
D)   both players have an incentive to charge a low price and undercut the competition.E) B) and D)
F) None of the above

Question 13

In sequential games,an especially important part of strategic behavior is to:

Accepted Answer

A)   "think backward, work forward."
B)   "think forward, work backward."
C)   "think forward, act backward."
D)   "think backward, act forward."E) All of the above
F) None of the above

Question 14

The game in the figure shown is a version of:

Accepted Answer

A)   the prisoner's dilemma.
B)   the first-mover advantage.
C)   a sequential game.
D)   a repeated game.E) A) and B)
F) B) and D)

Question 15

If the players in the figure shown act in their own self-interest,then we know that Adidas will earn:

Accepted Answer

A)   $2 million.
B)   $8 million.
C)   $6 million.
D)   $10 million.E) None of the above
F) B) and C)

Question 16

Commitment strategies:

Accepted Answer

A)   are not necessary to reach a mutually beneficial equilibrium in repeated games.
B)   are always needed to reach a mutually beneficial equilibrium in single-round games.
C)   usually fail to work.
D)   are not observed in reality.E) A) and B)
F) None of the above

Question 17

A dominant strategy is one:

Accepted Answer

A)   that is the best one to follow, no matter what strategy other players choose.
B)   in which a player is forced to choose given the rules of the game.
C)   in which a player must choose, even though it does not optimize his outcome.
D)   provides a player with the highest payoff in the game.E) None of the above
F) B) and C)

Question 18

The famous historical example of the commitment strategy used by Cortes against the Aztecs is sometimes referred to as:

Accepted Answer

A)   "burning your boats."
B)   "burning your bridges."
C)   "friendly fire."
D)   "putting all your eggs in one basket."E) B) and D)
F) A) and D)

Question 19

In games:

Accepted Answer

A)   there is only one strategy associated with each outcome.
B)   there are several strategies that can achieve a single goal.
C)   all strategies followed in one particular game should all be similar in order to be successful.
D)   if one person's strategy is wildly different from those of others, he will typically come in first or last.E) C) and D)
F) All of the above

Question 20

The tit-for-tat strategy:

Accepted Answer

A)   is not effective in repeated games.
B)   is not possible in single-round games.
C)   makes cooperation unlikely.
D)   All of these statements are true.E) A) and C)
F) A) and D)

Exam 9: Game Theory and Strategic Thinking

In sequential games,an especially important part of strategic behavior is to:

Correct Answer
verified

A dominant strategy is one:

Correct Answer
verified

Correct Answer
verified

The famous historical example of the commitment strategy used by Cortes against the Aztecs is sometimes referred to as:

Correct Answer
verified

By committing to reduce one's options during a sequential game,a player can force a change in his opponents' strategy,and that commitment strategy results in a:

Correct Answer
verified

A dominant strategy:

Correct Answer
verified

Two players who are both playing tit-for-tat can quickly find their way toward:

Correct Answer
verified

Correct Answer
verified

When a strategy is the best one to follow no matter what strategy other players choose,it is called a:

Correct Answer
verified

According to the figure shown,Adidas:

Correct Answer
verified

First-mover advantage is:

Correct Answer
verified

According to the figure shown:

Correct Answer
verified

If the players in the figure shown act in their own self-interest,then we know that Adidas will earn:

Correct Answer
verified

In games,strategies are:

Correct Answer
verified

In real life,people's behavior is constrained by:

Correct Answer
verified

In games:

Correct Answer
verified

Correct Answer
verified

The tit-for-tat strategy:

Correct Answer
verified

The game in the figure shown is a version of:

Correct Answer
verified

Commitment strategies:

Correct Answer
verified

Exam 9: Game Theory and Strategic Thinking

In sequential games,an especially important part of strategic behavior is to:

Correct AnswerverifiedShow Answer

A dominant strategy is one:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The famous historical example of the commitment strategy used by Cortes against the Aztecs is sometimes referred to as:

Correct AnswerverifiedShow Answer

By committing to reduce one's options during a sequential game,a player can force a change in his opponents' strategy,and that commitment strategy results in a:

Correct AnswerverifiedShow Answer

A dominant strategy:

Correct AnswerverifiedShow Answer

Two players who are both playing tit-for-tat can quickly find their way toward:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When a strategy is the best one to follow no matter what strategy other players choose,it is called a:

Correct AnswerverifiedShow Answer

According to the figure shown,Adidas:

Correct AnswerverifiedShow Answer

First-mover advantage is:

Correct AnswerverifiedShow Answer

According to the figure shown:

Correct AnswerverifiedShow Answer

If the players in the figure shown act in their own self-interest,then we know that Adidas will earn:

Correct AnswerverifiedShow Answer

In games,strategies are:

Correct AnswerverifiedShow Answer

In real life,people's behavior is constrained by:

Correct AnswerverifiedShow Answer

In games:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The tit-for-tat strategy:

Correct AnswerverifiedShow Answer

The game in the figure shown is a version of:

Correct AnswerverifiedShow Answer

Commitment strategies:

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

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified