Game theory is designed to study situations in which each agent's decisions are: A)interdependent. B)independent. C)constrained. D)uninformed.
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A)interdependent.
B)independent.
C)constrained.
D)uninformed.
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- Within a voluntary contribution game, the Nash equilibrium level of contribution is zero, but in experiments, it is often possible to sustain positive levels of contribution for a long period. How might we best explain this? A) Participants are altruistic, and so value the payoff which other participants receive, benefiting (indirectly) from making a contribution. B) Participants believe that if they make a contribution, then other participants will be more likely to make a contribution. C) Participants in experiments believe that they have to make contributions in order to receive any payoff from their participation. D) Participants have experience of working in situations in which cooperation can be sustained for mutual benefit and so have internalised a social norm of cooperationGame theory can capture strategic situations where your outcome depends not only upon your own choice but also upon the choice of another. Present a coordination game of your choice where you and another player each have two choices or strategies. Explain in words the Nash Equilibrium concept, and identify the Nash equilibrium or Nash equilibria for your game. Explain why the outcomes that are not Nash equilibria are not.Game theory is a method of analyzing: the costs and benefits of a transaction. the situations in which there are interdependent outcomes. the factors that affect an individualos budget set. the relation between returns and productivity of factors.
- Husband and wife want to spend Friday evening at cinema. They can watch the same movie, or different ones. They choose between two movies: “Heroes of War” and “Loving Stranger”. If they go to the same movie, they both feel satisfaction: in the case they watch “Heroes of War” husband’s satisfaction is higher, but in case they watch “Loving Stranger” wife’s satisfaction is higher. If they decide to watch different movies they feel no satisfaction at all. Help them to make the best decision (in terms of game theory – find Nash equilibrium).This question is from game theoryReal Options & Game Theory Is the following statement true or false (explain your answer): In any strategic-form game, if a player has a dominant strategy, then all of the other strategies of that player are dominated.
- If a game has a mixed strategy Nash equilibrium then which of the following statements is true? There is at least two pure strategy Nash equilibrium. There are at least two rationalizable strategies. Players prefer any pure strategy Nash equilibrium to the mixed strategy Nash equilibrium. Players always prefer to mix when the other player mixes. None of the above.Real Options & Game Theory List all pure strategy Nash equilibriaWhich of the following concepts of equilibrium in game theory always exists under the assumption ofexpected utility maximization? (A) dominant strategy equilibrium; (B) iterated dominance equilibrium ; (C) Nash equilibrium in mixed strategies; (D) Nash equilibrium in pure strategies.
