Question 1

Actions that are taken to influence the beliefs or actions of rivals in favorable ways are

Accepted Answer

A) pure strategies. 
B) mixed strategies. 
C) strategic moves. 
D) secure strategies. 
A) pure strategies. 
B) mixed strategies. 
C) strategic moves. 
D) secure strategies.

Question 2

If a strategic move is credible,it is likely to

Accepted Answer

A) be the dominant strategy of all the players in the game. 
B) change the actions of rivals. 
C) result in repeated,sequential interactions. 
D) result in self-enforcing outcomes. 
A) be the dominant strategy of all the players in the game. 
B) change the actions of rivals. 
C) result in repeated,sequential interactions. 
D) result in self-enforcing outcomes.

Question 3

Game theory between two firms with two outcomes tends to emphasize

Accepted Answer

A) noncooperative games. 
B) organizational architecture. 
C) intrafirm decision making. 
D) purely competitive outcomes. 
A) noncooperative games. 
B) organizational architecture. 
C) intrafirm decision making. 
D) purely competitive outcomes.

Question 4

Which of the following can be used to predict the outcome of a game if there are no dominant strategies in the game?

Accepted Answer

A) Secure strategy 
B) Nash equilibrium 
C) First-mover advantage 
D) Prisoner's dilemma 
A) Secure strategy 
B) Nash equilibrium 
C) First-mover advantage 
D) Prisoner's dilemma

Question 5

Identify the statement that best defines Nash equilibrium.

Accepted Answer

A) It is a set of strategies in which a firm does the best it can,given the action of its rival. 
B) It is a sequence of actions,where the actions are taken at each node of the game. 
C) It is a set of strategies that gives a player the first-mover advantage. 
D) It is a sequence of actions that are taken to influence the actions of rivals. 
A) It is a set of strategies in which a firm does the best it can,given the action of its rival. 
B) It is a sequence of actions,where the actions are taken at each node of the game. 
C) It is a set of strategies that gives a player the first-mover advantage. 
D) It is a sequence of actions that are taken to influence the actions of rivals.

Question 6

Walmart built the base of its retailing market power in small cities and towns.In most of those towns,the size of the marketplace is so small that only one large retailer can successfully exist.This resulted in

Accepted Answer

A) adverse selection. 
B) first-mover advantage. 
C) secure strategy. 
D) extension form. 
A) adverse selection. 
B) first-mover advantage. 
C) secure strategy. 
D) extension form.

Question 7

A display of a game in a tree diagram with nodes for every move by the players is a(n)

Accepted Answer

A) part of strategic moves. 
B) representation of Prisoner's Dilemma. 
C) simultaneous-move game. 
D) extensive-form game. 
A) part of strategic moves. 
B) representation of Prisoner's Dilemma. 
C) simultaneous-move game. 
D) extensive-form game.

Question 8

Though Nash games are noncooperative,a cooperative outcome is more likely if

Accepted Answer

A) the long-run gains are smaller than the short-run gains. 
B) firms can easily monitor the outcomes from cooperation. 
C) firms expect the market relationship to last only for a short time. 
D) firms can easily monitor the outcomes from rivals' defection. 
A) the long-run gains are smaller than the short-run gains. 
B) firms can easily monitor the outcomes from cooperation. 
C) firms expect the market relationship to last only for a short time. 
D) firms can easily monitor the outcomes from rivals' defection.

Question 9

Refer to Figure 9.5.   If the bus companies can expect to bid for contracts every 6-12 months for new buses,then the outcome may shift to

Accepted Answer

A) GMB-High,VolgaBus-High. 
B) GMB-Low,VolgaBus-High. 
C) GMB-High,VolgaBus-Low. 
D) GMB-Low,VolgaBus-Low. 
A) GMB-High,VolgaBus-High. 
B) GMB-Low,VolgaBus-High. 
C) GMB-High,VolgaBus-Low. 
D) GMB-Low,VolgaBus-Low.

Question 10

A and B are going to play a game twice.During both repetitions,if they both select a low price or a high price,their market share stays the same.But if one selects a low price while the other selects a high price,then the one with the low price gets more money while the one with the high price loses some market share.Based on this information,what is the most likely outcome in both periods?

Accepted Answer

Start with the second period.If you are

Question 11

The benefit of a mixed strategy is

Accepted Answer

A) higher returns for both the players in the market. 
B) lower risks for both the players in the market. 
C) the element of consistency that baffles rivals. 
D) the element of surprise that baffles rivals. 
A) higher returns for both the players in the market. 
B) lower risks for both the players in the market. 
C) the element of consistency that baffles rivals. 
D) the element of surprise that baffles rivals.

Question 12

Which of the following is a difference between a pure strategy and a mixed strategy?

Accepted Answer

A) When a player chooses a specific action in a game,it is a pure strategy,while in a mixed strategy players randomize. 
B) When a player assigns a probability to an action,it is a pure strategy,while in a mixed strategy players choose their actions sequentially. 
C) A pure strategy has an element of surprise,while a mixed strategy can be easily predicted by rivals. 
D) A pure strategy involves all players making their moves simultaneously,while a mixed strategy minimizes the losses of players. 
A) When a player chooses a specific action in a game,it is a pure strategy,while in a mixed strategy players randomize. 
B) When a player assigns a probability to an action,it is a pure strategy,while in a mixed strategy players choose their actions sequentially. 
C) A pure strategy has an element of surprise,while a mixed strategy can be easily predicted by rivals. 
D) A pure strategy involves all players making their moves simultaneously,while a mixed strategy minimizes the losses of players.

Question 13

A moves first and can go L or R.B moves second and can go R or L.If both of them end up at L or at R,A gets $1 and B gets $0.If one ends up at L and the other at R,then B gets $1 and A gets $0.What will be the equilibrium in this game?

Accepted Answer

Since B moves second, we start with B. W

Question 14

Refer to Figure 9.5.   If GMB were required to submit a single sealed bid to supply buses to MetroTravel,it would

Accepted Answer

A) submit a low price. 
B) submit a high price. 
C) submit neither a high nor low price. 
D) split the bid-half high and half low. 
A) submit a low price. 
B) submit a high price. 
C) submit neither a high nor low price. 
D) split the bid-half high and half low.

Question 15

Refer to Figure 9.1.GMB and VolgaBus compete to sell 100 buses to MetroTravel,a city-owned bus company.If sealed bids are required and no illegal activities occur,what will be the outcome? Explain the process.

Accepted Answer

The Nash Equilibrium in this game is for

Actions that are taken to influence the beliefs or actions of rivals in favorable ways are

If a strategic move is credible,it is likely to

Game theory between two firms with two outcomes tends to emphasize

Which of the following can be used to predict the outcome of a game if there are no dominant strategies in the game?

Identify the statement that best defines Nash equilibrium.

Walmart built the base of its retailing market power in small cities and towns.In most of those towns,the size of the marketplace is so small that only one large retailer can successfully exist.This resulted in

A display of a game in a tree diagram with nodes for every move by the players is a(n)

Though Nash games are noncooperative,a cooperative outcome is more likely if

Refer to Figure 9.5. If the bus companies can expect to bid for contracts every 6-12 months for new buses,then the outcome may shift to

The benefit of a mixed strategy is

Which of the following is a difference between a pure strategy and a mixed strategy?

A moves first and can go L or R.B moves second and can go R or L.If both of them end up at L or at R,A gets $1 and B gets $0.If one ends up at L and the other at R,then B gets $1 and A gets $0.What will be the equilibrium in this game?

Refer to Figure 9.5. If GMB were required to submit a single sealed bid to supply buses to MetroTravel,it would

Refer to Figure 9.1.GMB and VolgaBus compete to sell 100 buses to MetroTravel,a city-owned bus company.If sealed bids are required and no illegal activities occur,what will be the outcome? Explain the process.

Introduction

Economists View of Behavior

Exchange and Markets

Demand

Production and Cost

Market Structure

Pricing With Market Power

Economics of Strategy: Creating and Capturing Value

Incentive Conflicts and Contracts

Organizational Architecture

Decision Rights: the Level of Empowerment

Decision Rights: Bundling Tasks Into Jobs and Subunits

Attracting and Retaining Qualified Employees

Incentive Compensation

Individual Performance Evaluation

Divisional Performance Evaluation

Corporate Governance

Vertical Integration and Outsourcing

Leadership: Motivating Change Within Organizations

Understanding the Business Environment: the Economics of Regulation

Ethics and Organizational Architecture

Organizational Architecture and the Process of Management Innovation

Filters

Exam 9: Economics of Strategy: Game Theory

Actions that are taken to influence the beliefs or actions of rivals in favorable ways are

If a strategic move is credible,it is likely to

Game theory between two firms with two outcomes tends to emphasize

Which of the following can be used to predict the outcome of a game if there are no dominant strategies in the game?

Identify the statement that best defines Nash equilibrium.

Walmart built the base of its retailing market power in small cities and towns.In most of those towns,the size of the marketplace is so small that only one large retailer can successfully exist.This resulted in

A display of a game in a tree diagram with nodes for every move by the players is a(n)

Though Nash games are noncooperative,a cooperative outcome is more likely if

Refer to Figure 9.5. If the bus companies can expect to bid for contracts every 6-12 months for new buses,then the outcome may shift to

The benefit of a mixed strategy is

Which of the following is a difference between a pure strategy and a mixed strategy?

A moves first and can go L or R.B moves second and can go R or L.If both of them end up at L or at R,A gets $1 and B gets $0.If one ends up at L and the other at R,then B gets $1 and A gets $0.What will be the equilibrium in this game?

Refer to Figure 9.5. If GMB were required to submit a single sealed bid to supply buses to MetroTravel,it would

Refer to Figure 9.1.GMB and VolgaBus compete to sell 100 buses to MetroTravel,a city-owned bus company.If sealed bids are required and no illegal activities occur,what will be the outcome? Explain the process.

Introduction

Economists View of Behavior

Exchange and Markets

Demand

Production and Cost

Market Structure

Pricing With Market Power

Economics of Strategy: Creating and Capturing Value

Incentive Conflicts and Contracts

Organizational Architecture

Decision Rights: the Level of Empowerment

Decision Rights: Bundling Tasks Into Jobs and Subunits

Attracting and Retaining Qualified Employees

Incentive Compensation

Individual Performance Evaluation

Divisional Performance Evaluation

Corporate Governance

Vertical Integration and Outsourcing

Leadership: Motivating Change Within Organizations

Understanding the Business Environment: the Economics of Regulation

Ethics and Organizational Architecture

Organizational Architecture and the Process of Management Innovation

Filters