##### Click on the correct option. Text colour will change into green if your chosen option is corret and if it is wrong, it will change into red:

- Game theory
- examines the choice of optimal strategies in conflict situations
- seeks to predict the behavior of players
- can be used to analyze oligopolistic interdependence
- all of the above
- A dominant strategy refers to the strategy that a player in a game chooses
- independently of the strategy of the other player
- given the strategy of the other player
- in Nash equilibrium
- in a cartel
- Which of the following statements is correct?
- a dominant strategy equilibrium is always a Nash equilibrium
- a dominant strategy equilibrium can be a Nash equilibrium
- a Nash equilibrium is also a dominant strategy equilibrium
- a Nash equilibrium cannot be a dominant strategy equilibrium
- All games always have
- a single dominant strategy
- multiple dominant strategies
- a single Nash equilibrium
- none of the above
- In a prisoners’ dilemma
- each player has a dominant strategy
- the players are not in Nash equilibrium
- the players cannot do better by cooperating
- none of the above
- The prisoners’ dilemma can be used to analyze
- price competition
- advertising expenditures by rival firms
- product style changes
- all of the above
- For a prisoners’ dilemma to occur it is sufficient
- for each player to have a dominant strategy
- for both players to be in Nash equilibrium
- for each player to adopt its dominant strategy but to be able to do better by cooperation
- all of the above
- One disadvantage of the analysis of the prisoners’ dilemma is that it
- refers to a one-move game only
- does not lead the players to maximize gains
- only applies to economics
- cannot be overcome by cooperation
- The best strategy for repeated prisoners’ dilemma games is
- tit-for-tat
- the dominant strategy
- the Nash equilibrium
- the Cournot solution
- Tit-for-tat refers to the game theory rule that
- you should cooperate as long as your rival cooperates
- you should not cooperate when your rival does not cooperate
- is best to follow in repeated games
- all of the above
- The following condition is required for tit-for-tat to be the best strategy in repeated prisoners’ dilemma games:
- there must be a reasonably stable set of players, preferably two
- each firm must be able to quickly detect cheating by other firms
- demand and cost conditions must be relatively stable
- the number of moves must be infinite, or at least a very large and uncertain
- all of the above
- A strategic move refers to all the following except
- a Nash equilibrium
- making a credible threat
- adopting policies to deter entrance into the market
- making a preventive investment

## No comments:

## Post a Comment