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
Which of the following is LEAST likely characterized by mixed strategies? A) the choice of whether to go to war or not B) the choice of which pitch to throw in baseball C) the choice of which play to run in football D) the choice of where to kick a soccer penalty shot ANSWER […]
Date: September 9th, 2020
A dominated strategy A) may be part of a Nash equilibrium. B) is never played. C) can be a best response. D) is always part of a mixed-strategy Nash equilibrium. ANSWER B
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
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
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
