A player can choose among three strategies: L, C, and R. Strategy C is never a best response to the other player strategies. This means that A) strategy C is always played. B) strategy C is never played. C) strategy C will be part of a Nash equilibrium. D) strategies L and R are never […]
Date: September 9th, 2020
A player can choose among three strategies: T, M, and B. Nevertheless, strategy B is dominated by strategy T. This means that A) strategy T is always played. B) strategy B is never played. C) strategy B will be part of a Nash equilibrium. D) strategy M is never played. ANSWER B
Date: September 9th, 2020
Which of the following is NOT part of solving a game? A) Write down all possible combinations of strategies. B) Write down all possible payoffs and eliminate dominated strategies. C) Solve for any Nash Equilibrium. D) None of the above. ANSWER D
Date: September 9th, 2020
If a strategy is a best response, then A) it will never be played. B) it will never be part of a Nash equilibrium. C) A and B are correct. D) it could be part of a Nash equilibrium. ANSWER D
Date: September 9th, 2020
Many college football teams require a “donation” in order to purchase season tickets. This is A) price gouging. B) a tie-in sale. C) two-part pricing. D) anti-competitive behavior. ANSWER C
Date: September 9th, 2020
What is the counter-intuitive solution to a mixed strategy? A) Player A makes Player B indifferent between its strategy choices. B) Player A makes itself indifferent between its strategy choices. C) Player A changes the rules of the game. D) There are no mixed strategies in most games. ANSWER A
Date: September 9th, 2020
Mutually Assured Destruction was a standing policy during the Cold War, in which the United States and the U.S.S.R. maintained and expanded nuclear arsenals beyond practical levels. What could explain such a phenomenon? A) insane public officials who were bent on world domination B) a prisoners’ dilemma C) a leader-follower type game D) tacit collusion […]
Date: September 9th, 2020
Consider a car dealership advertises a three-year lease at $250 per month. When you arrive to apply, you discover that the lease requires a down payment of $3600 dollars. You will undertake the lease if A) you value the lease at least $350 per month. B) you value the lease at least $250 per month, […]
Date: September 9th, 2020
Which of the following constitutes a mixed strategy Nash equilibrium of the Odds and Evens game? A) Play Even and Odd with 50% probability each. B) Play Even with 75% probability and Odd with 25% probability. C) Always play Even. D) This game has no mixed strategy Nash equilibrium. ANSWER A
Date: September 9th, 2020
Stores such as Costco and Sam’s Club require an annual membership before you can shop there. This is a form of A) two-part pricing. B) price gouging. C) a tie-in sale. D) anti-competitive behavior. ANSWER A
Date: September 9th, 2020
