Question 1

First-mover advantage is:

Accepted Answer

A)  more important in an ultimatum game than in a repeated game.
B)  more important in a repeated game than in a sequential game.
C)  more important in a repeated sequential game than in a one-round sequential game.
D)  more important to those who have less to bargain with.E) None of the above
F) A) and B)

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:

Accepted Answer

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

Question 3

If you are following a tit-for-tat strategy in a repeated game,and your opponent makes a cooperative move,you will:

Accepted Answer

A)  make a cooperative move in the next round.
B)  collude.
C)  price compete.
D)  defect.E) B) and C)
F) B) and D)

Question 4

The tit-for-tat strategy:

Accepted Answer

A)  is common in repeated games.
B)  is never used in single-round games.
C)  can result in players' maintaining cooperation.
D)  All of these statements are true.E) None of the above
F) All of the above

Question 5

An ultimatum game is:

Accepted Answer

A)  one in which one player makes an offer and the other player has the simple choice of whether to accept or reject.
B)  one in which one player makes an offer and the other player has the choice of whether to accept or offer a counteroffer.
C)  a repeated sequential game.
D)  the only game played by unions in reality.E) A) and D)
F) None of the above

Question 6

The prisoner's dilemma game can involve:

Accepted Answer

A)  only two players.
B)  more than two players.
C)  organizations.
D)  All of these statements are true.E) A) and C)
F) A) and B)

Question 7

Backward induction is a useful tool:

Accepted Answer

A)  to finding an optimal strategy in a sequential game.
B)  for analyzing the decision in a prisoner's dilemma-type game.
C)  for finding an optimal strategy in a simultaneous game.
D)  Backward induction can be used in any of these games.E) B) and C)
F) A) and B)

Question 8

Behaving strategically:

Accepted Answer

A)  means recognizing that the actions of others will affect the trade-offs you face,and acting accordingly.
B)  is an essential part of game theory.
C)  involves rational decision making.
D)  All of these statements are true.E) None of the above
F) B) and D) D

Question 9

In game theory,an example of a payoff would be:

Accepted Answer

A)  a bribe.
B)  sharing information with a select few that others aren't privy to.
C)  winning the lottery.
D)  giving an advantage to only one player.E) A) and D)
F) A) and C)

Question 10

In a game of bargaining,the player who is willing to:

Accepted Answer

A)  hold out longer has more bargaining power and so receives a better payoff.
B)  be cooperative has more bargaining power and so receives a worse payoff.
C)  hold out longer has more bargaining power and so receives a worse payoff.
D)  make the first move has more bargaining power and so receives a better payoff.E) C) and D)
F) A) and B)

Question 11

The prisoner's dilemma can be summarized in:

Accepted Answer

A)  a strategy matrix.
B)  a strategy tree.
C)  a decision matrix.
D)  a flowchart.E) A) and B)
F) A) and C)

Question 12

In the real world,wage negotiations typically do not drag on for years:

Accepted Answer

A)  because the company can simply offer the split that would eventually occur if the two sides played all the rounds.
B)  because neither a company nor employees can afford to not work that long.
C)  unless the employees play an ultimatum game using a union to negotiate.
D)  None of these statements is true.E) All of the above
F) A) and C)

Question 13

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

Accepted Answer

A)  laws of nature.
B)  legislated rules of society.
C)  laws that define industry structure.
D)  All of these are rules that constrain people's behavior.E) A) and B)
F) A) and C)

Question 14

The tit-for-tat strategy is:

Accepted Answer

A)  one in which a player in a repeated game takes the same action that his or her opponent did in the preceding round.
B)  one in which both players explicitly agree to compete in the first round of a repeated game,and if one of them cooperates,the other will defect.
C)  not effective in prisoner's dilemma type games.
D)  All of these statements are true.E) None of the above
F) A) and D)

Question 15

In the prisoner's dilemma game:

Accepted Answer

A)  a stable outcome is possible.
B)  a stable outcome is impossible.
C)  only one player has a dominant strategy.
D)  a commitment strategy is needed to reach a stable outcome.E) A) and D)
F) B) and C)

Question 16

If one player defects in a repeated game,and his opponent is following a tit-for-tat strategy,we can predict the opponent will:

Accepted Answer

A)  defect in the next round.
B)  quit the game.
C)  cooperate and try to get his opponent to follow.
D)  collude.E) All of the above
F) B) and D)

Question 17

If there is no one strategy that is best every time:

Accepted Answer

A)  there is no dominant strategy.
B)  the dominant strategy will be to defect.
C)  a noncooperative equilibrium is the only possible outcome.
D)  the dominant strategy for at least one player will be to cooperate.E) B) and D)
F) B) and C) A

Question 18

Collusion:

Accepted Answer

A)  is a common problem in reality.
B)  rarely occurs in reality.
C)  never occurs in reality.
D)  has not occurred in the last hundred years or so,due to government policy outlawing it.E) A) and B)
F) A) and C) A

Question 19

Reaching a positive-positive outcome through a commitment strategy:

Accepted Answer

A)  can benefit everyone.
B)  will only benefit the players and will not serve public interest.
C)  will not benefit anyone.
D)  will always benefit everyone.E) All of the above
F) B) and C)

Question 20

Economists call a game that is played more than once:

Accepted Answer

A)  a repeated game.
B)  collusion.
C)  a commitment strategy.
D)  cooperative price play.E) A) and B)
F) B) and C)

Exam 9: Game Theory and Strategic Thinking

First-mover advantage is:

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:

Correct AnswerverifiedShow Answer

If you are following a tit-for-tat strategy in a repeated game,and your opponent makes a cooperative move,you will:

Correct AnswerverifiedShow Answer

The tit-for-tat strategy:

Correct AnswerverifiedShow Answer

An ultimatum game is:

Correct AnswerverifiedShow Answer

The prisoner's dilemma game can involve:

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Backward induction is a useful tool:

Correct AnswerverifiedShow Answer

Behaving strategically:

Correct AnswerverifiedD

In game theory,an example of a payoff would be:

Correct AnswerverifiedShow Answer

In a game of bargaining,the player who is willing to:

Correct AnswerverifiedShow Answer

The prisoner's dilemma can be summarized in:

Correct AnswerverifiedShow Answer

In the real world,wage negotiations typically do not drag on for years:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The tit-for-tat strategy is:

Correct AnswerverifiedShow Answer

In the prisoner's dilemma game:

Correct AnswerverifiedShow Answer

If one player defects in a repeated game,and his opponent is following a tit-for-tat strategy,we can predict the opponent will:

Correct AnswerverifiedShow Answer

If there is no one strategy that is best every time:

Correct AnswerverifiedA

Collusion:

Correct AnswerverifiedA

Reaching a positive-positive outcome through a commitment strategy:

Correct AnswerverifiedShow Answer

Economists call a game that is played more than once:

Correct AnswerverifiedShow Answer

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A

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