Question 1

-Consider the game depicted in Figure 2.18. Which player has a dominant strategy:

Accepted Answer

A)  Player A 
B)  Player B 
C)  Both players 
D)  Neither player 
A)  Player A 
B)  Player B 
C)  Both players 
D)  Neither player

Question 2

-The Snake River Company and the Loblolly River Company are considering their respective advertising campaigns. Figure 2.10 summarizes the possible payoffs (in thousands of dollars) to each company from each combination of advertising strategies. The Nash equilibrium strategy profile for this game is:

Accepted Answer

A)  {Television, Radio} 
B)  {Television, Magazines} 
C)  {Newspapers, Radio} 
D)  {Newspapers, Magazines} 
E)  This game does not have a unique Nash equilibrium strategy profile. 
A)  {Television, Radio} 
B)  {Television, Magazines} 
C)  {Newspapers, Radio} 
D)  {Newspapers, Magazines} 
E)  This game does not have a unique Nash equilibrium strategy profile.

Question 3

-Consider the simultaneous-move game depicted in Figure 2.20. Which team has a dominant strategy?

Accepted Answer

A)  New York Giants 
B)  Baltimore Ravens 
C)  Both teams 
D)  Neither team 
A)  New York Giants 
B)  Baltimore Ravens 
C)  Both teams 
D)  Neither team

Question 4

-The Snake River Company and the Loblolly River Company are considering their respective advertising campaigns. Figure 2.10 summarizes the possible payoffs (in thousands of dollars) to each company from each combination of advertising strategies. The Snake River Company has a:

Accepted Answer

A)  Weakly dominant strategy. 
B)  Nondominant strategy. 
C)  Strictly dominated strategy. 
D)  Iterated weakly dominated strategy. 
E)  None of the above. 
A)  Weakly dominant strategy. 
B)  Nondominant strategy. 
C)  Strictly dominated strategy. 
D)  Iterated weakly dominated strategy. 
E)  None of the above.

Question 5

-Consider the noncooperative, one-time, static game depicted in Figure 2.17. The Nash equilibrium strategy profile(s) for this game is(are):
I. {A, F}.
II. {B, E}.
III. {C, F}.
IV. {B, D}.
V. {B, F}.
Which of the following is correct?

Accepted Answer

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

Question 6

-Consider the static game depicted in Figure 2.18. The Nash equilibrium strategy profile(s) for this game is (are):
I. {A1, B1}.
II. {A2, B1}.
III. {A2, B2}.
IV. {A3, B3}.
V. {A3, B1}.
Which of the following is correct?

Accepted Answer

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

Question 7

-Consider the noncooperative, one-time, static game depicted in Figure 2.17. P2 has _____ dominated strategy or strategies.

Accepted Answer

A)  0 
B)  1 
C)  2 
D)  3 
A)  0 
B)  1 
C)  2 
D)  3

Question 8

Fred and Ethel are contestants on the game show Truth or Consequences. Fred and Ethel were introduced to each other moments before the show began. The game begins with the two contestants answering a trivia question. If they answer correctly, they are sent to separate isolation chambers where they must choose Truth or Consequences. They are told that if they both choose Truth then they will share equally a $10,000 prize. If one chooses Truth and the other chooses Consequences, the player choosing Consequences gets the entire $10,000 while the player choosing Truth gets nothing. If they both choose Consequences, they each get $100 as a parting gift. In this game, who has a dominant strategy?

Accepted Answer

A)  Fred 
B)  Ethel 
C)  Both 
D)  Neither 
E)  Cannot be determined based on the information provided. 
A)  Fred 
B)  Ethel 
C)  Both 
D)  Neither 
E)  Cannot be determined based on the information provided.

Question 9

-Refer to Figure 2.1, which represents the normal form of a noncooperative, one-time, static game. A Nash equilibrium occurs at the strategy profile:

Accepted Answer

A)  {Raise price, Raise price}. 
B)  {Raise price, Don't raise price}. 
C)  {Don't raise price, Raise price}. 
D)  {Don't raise price, Don't raise price}. 
A)  {Raise price, Raise price}. 
B)  {Raise price, Don't raise price}. 
C)  {Don't raise price, Raise price}. 
D)  {Don't raise price, Don't raise price}.

Question 10

-Consider the noncooperative, one-time, static game depicted in Figure 2.14 in which the payoffs are in millions of dollars. Suppose that Tsunami Corporation and Cyclone Company contemplating a change in their advertising strategies. If both players adopt a maximin decision rule, the resulting strategy profile is:

Accepted Answer

A)  {Newspapers, Magazines}. 
B)  {Television, Magazines}. 
C)  {Newspapers, Radio}. 
D)  {Television, Radio}. 
A)  {Newspapers, Magazines}. 
B)  {Television, Magazines}. 
C)  {Newspapers, Radio}. 
D)  {Television, Radio}.

Question 11

-Consider the static game depicted in Figure 2.19. P1 has _____ dominated strategy or strategies.

Accepted Answer

A)  0 
B)  1 
C)  2 
D)  3 
A)  0 
B)  1 
C)  2 
D)  3

Question 12

Firm A is considering entering a market in which firm B is a monopolist. Firm B must decide how to respond to this challenge. If firm A decides to enter, firm B can either adopt an aggressive pricing strategy or a passive pricing strategy. If firm B adopts an aggressive pricing strategy, firm A will lose $5 million, although firm B will only earn $1 million. If firm B adopts a passive pricing strategy, firm A will earn $3 million and firm B will earn $7 million. Finally, if firm A decides to stay out of the market, firm B will earn $14 million regardless of its pricing strategy. The Nash equilibrium strategy profile for this game is:

Accepted Answer

A)  {Enter, Aggressive}. 
B)  {Enter, Passive}. 
C)  {Stay out, Aggressive}. 
D)  {Stay out, Passive}. 
E)  Undecided. This game has multiple Nash equilibria. 
A)  {Enter, Aggressive}. 
B)  {Enter, Passive}. 
C)  {Stay out, Aggressive}. 
D)  {Stay out, Passive}. 
E)  Undecided. This game has multiple Nash equilibria.

Question 13

-Refer to Figure 2.15, which represents a simultaneous-move, noncooperative, one-time game in which larger payoffs are preferred. If both players adopt a minimax regret decision rule, the resulting strategy profile for this game is:

Accepted Answer

A)  {A1, B1}. 
B)  {A1, B2}. 
C)  {A2, B1}. 
D)  {A2, B2}. 
A)  {A1, B1}. 
B)  {A1, B2}. 
C)  {A2, B1}. 
D)  {A2, B2}.

Question 14

-Consider the noncooperative, one-time, static game depicted in depicted in Figure 2.22. Which player has a dominant strategy?

Accepted Answer

A)  Moe 
B)  Larry 
C)  Curley 
D)  Moe and Curly 
E)  None of the above 
A)  Moe 
B)  Larry 
C)  Curley 
D)  Moe and Curly 
E)  None of the above

Question 15

-Refer to Figure 2.3, which represents a noncooperative, one-time, static game. If larger payoffs are preferred, which firm has a strictly dominant strategy?

Accepted Answer

A)  Firm A 
B)  Firm B 
C)  Both firms 
D)  Neither firm 
A)  Firm A 
B)  Firm B 
C)  Both firms 
D)  Neither firm

Question 16

-Consider the noncooperative, one-time, static game depicted in Figure 2.13 in which larger payoffs are preferred. If both players adopt a minimax regret decision rule, the resulting strategy profile for this game is:

Accepted Answer

A)  {A1, B1}. 
B)  {A1, B2}. 
C)  {A2, B1}. 
D)  {A2, B2}. 
A)  {A1, B1}. 
B)  {A1, B2}. 
C)  {A2, B1}. 
D)  {A2, B2}.

Question 17

In the text application "A Beautiful Mind," the Nash equilibrium is for the classmates to:

Accepted Answer

A)  Go for the blonde. 
B)  Ignore the blonde and go for the brunettes. 
C)  Come to agreement and decide who gets the blonde and who gets the brunettes. 
D)  Ignore the blonde and the brunettes and keep drinking. 
E)  This game does not have a unique Nash equilibrium. 
A)  Go for the blonde. 
B)  Ignore the blonde and go for the brunettes. 
C)  Come to agreement and decide who gets the blonde and who gets the brunettes. 
D)  Ignore the blonde and the brunettes and keep drinking. 
E)  This game does not have a unique Nash equilibrium.

Question 18

-Consider the noncooperative, one-time, static game depicted in Figure 2.23. The Nash equilibrium strategy profile(s) for this game is(are):
I. {Horse Feathers, Night at the Opera, Animal Crackers}.
II. {Horse Feathers, Day at the Races, Animal Crackers}
III. {Duck Soup, Night at the Opera, Monkey Business}
IV. {Horse Feathers, Night at the Opera, Monkey Business}
V. {Duck Soup, Day at the Races, Monkey Business}
Which of the following is correct?

Accepted Answer

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

Question 19

-Use Figure 2.5 to answer this question. Suppose that two teenagers have a crush on each other, but neither know's the other's feelings. At a school dance both have to decide whether or not to "declare" their feelings for the other. If both "declare" they get significant positive utility, but if they are rebuffed they face humiliation in front of their friends, which results in significant negative utility. Finally, if they choose to ignore each other they will maximize their worst outcome, that is, they will avoid humiliation. Social convention dictates that the teenage boy makes the first move. His dominant strategy is to:

Accepted Answer

A)  Declare. 
B)  Rebuff/Ignore. 
C)  Choose at random. 
D)  None of the above. 
A)  Declare. 
B)  Rebuff/Ignore. 
C)  Choose at random. 
D)  None of the above.

Question 20

Fred and Ethel are contestants on the game show Truth or Consequences. Fred and Ethel were introduced to each other moments before the show began. The game begins with the two contestants answering a trivia question. If they answer correctly, they are sent to separate isolation chambers where they must choose Truth or Consequences. They are told that if they both choose Truth then they will share equally a $10,000 prize. If one chooses Truth and the other chooses Consequences, the player choosing Consequences gets the entire $10,000 while the player choosing Truth gets nothing. If they both choose Consequences, they each get $100 as a parting gift. If both players use a maximin decision rule, the strategy profile for this game is:

Accepted Answer

A)  {Truth, Truth}. 
B)  {Consequences, Consequences}. 
C)  {Truth, Consequences}. 
D)  {Consequences, Truth}. 
E)  This game does not have a Nash equilibrium 
A)  {Truth, Truth}. 
B)  {Consequences, Consequences}. 
C)  {Truth, Consequences}. 
D)  {Consequences, Truth}. 
E)  This game does not have a Nash equilibrium

-Consider the game depicted in Figure 2.18. Which player has a dominant strategy:

-Consider the simultaneous-move game depicted in Figure 2.20. Which team has a dominant strategy?

-The Snake River Company and the Loblolly River Company are considering their respective advertising campaigns. Figure 2.10 summarizes the possible payoffs (in thousands of dollars) to each company from each combination of advertising strategies. The Snake River Company has a:

-Consider the noncooperative, one-time, static game depicted in Figure 2.17. The Nash equilibrium strategy profile(s) for this game is(are): I. {A, F}. II. {B, E}. III. {C, F}. IV. {B, D}. V. {B, F}. Which of the following is correct?

-Consider the static game depicted in Figure 2.18. The Nash equilibrium strategy profile(s) for this game is (are): I. {A1, B1}. II. {A2, B1}. III. {A2, B2}. IV. {A3, B3}. V. {A3, B1}. Which of the following is correct?

-Consider the noncooperative, one-time, static game depicted in Figure 2.17. P2 has _____ dominated strategy or strategies.

-Refer to Figure 2.1, which represents the normal form of a noncooperative, one-time, static game. A Nash equilibrium occurs at the strategy profile:

-Consider the static game depicted in Figure 2.19. P1 has _____ dominated strategy or strategies.

-Refer to Figure 2.15, which represents a simultaneous-move, noncooperative, one-time game in which larger payoffs are preferred. If both players adopt a minimax regret decision rule, the resulting strategy profile for this game is:

-Consider the noncooperative, one-time, static game depicted in depicted in Figure 2.22. Which player has a dominant strategy?

-Refer to Figure 2.3, which represents a noncooperative, one-time, static game. If larger payoffs are preferred, which firm has a strictly dominant strategy?

-Consider the noncooperative, one-time, static game depicted in Figure 2.13 in which larger payoffs are preferred. If both players adopt a minimax regret decision rule, the resulting strategy profile for this game is:

In the text application "A Beautiful Mind," the Nash equilibrium is for the classmates to:

Introduction to Game Theory

Focal-Point and Evolutionary Equilibria

Infinitely-Repeated, Static Games

Finitely-Repeated, Static Games

Mixing Pure Strategies

Static Games With Continuous Strategies

Imperfect Competition

Perfect Competition and Monopoly

Strategic Trade Policy

Dynamic Games With Complete

Bargaining

Pure Strategies With Uncertain Payoffs

Torts and Contracts

Auctions

Dynamic Games With Incomplete Information

Filters

Exam 2: Noncooperative, One-Time, Static Games

-Consider the game depicted in Figure 2.18. Which player has a dominant strategy:

-Consider the simultaneous-move game depicted in Figure 2.20. Which team has a dominant strategy?

-The Snake River Company and the Loblolly River Company are considering their respective advertising campaigns. Figure 2.10 summarizes the possible payoffs (in thousands of dollars) to each company from each combination of advertising strategies. The Snake River Company has a:

-Consider the noncooperative, one-time, static game depicted in Figure 2.17. The Nash equilibrium strategy profile(s) for this game is(are): I. {A, F}. II. {B, E}. III. {C, F}. IV. {B, D}. V. {B, F}. Which of the following is correct?

-Consider the static game depicted in Figure 2.18. The Nash equilibrium strategy profile(s) for this game is (are): I. {A1, B1}. II. {A2, B1}. III. {A2, B2}. IV. {A3, B3}. V. {A3, B1}. Which of the following is correct?

-Consider the noncooperative, one-time, static game depicted in Figure 2.17. P2 has _____ dominated strategy or strategies.

-Refer to Figure 2.1, which represents the normal form of a noncooperative, one-time, static game. A Nash equilibrium occurs at the strategy profile:

-Consider the static game depicted in Figure 2.19. P1 has _____ dominated strategy or strategies.

-Refer to Figure 2.15, which represents a simultaneous-move, noncooperative, one-time game in which larger payoffs are preferred. If both players adopt a minimax regret decision rule, the resulting strategy profile for this game is:

-Consider the noncooperative, one-time, static game depicted in depicted in Figure 2.22. Which player has a dominant strategy?

-Refer to Figure 2.3, which represents a noncooperative, one-time, static game. If larger payoffs are preferred, which firm has a strictly dominant strategy?

-Consider the noncooperative, one-time, static game depicted in Figure 2.13 in which larger payoffs are preferred. If both players adopt a minimax regret decision rule, the resulting strategy profile for this game is:

In the text application "A Beautiful Mind," the Nash equilibrium is for the classmates to:

Introduction to Game Theory

Focal-Point and Evolutionary Equilibria

Infinitely-Repeated, Static Games

Finitely-Repeated, Static Games

Mixing Pure Strategies

Static Games With Continuous Strategies

Imperfect Competition

Perfect Competition and Monopoly

Strategic Trade Policy

Dynamic Games With Complete

Bargaining

Pure Strategies With Uncertain Payoffs

Torts and Contracts

Auctions

Dynamic Games With Incomplete Information

Filters