Match the definition to each term listed below.Number1234567891011DefinitionA table that shows the payoffs each firm earns from every combination of firm strategiesAn agreement among firms to charge the same price or otherwise not to competeAn option that is better than any alternative option regardless of what the other firm doesAn outcome of a strategic game from which neither rival wants to deviateA game outcome in which players seek to increase their mutual payoffA practice where one firm initiates a price change and the other firms follow the leaderA game in which the firms choose their strategies at the same timeOne firm's gain must equal the other firm's lossA game in which the sum ofFirms select their optimal strategies in a single time period without regard to possibleinteractions in subsequent time periodsA game that occurs more than oncethe two firms' outcomes is positiveInstructions: Enter a numeric response corresponding to the number of the definition listed above.a. A repeated game:b. Cooperative equilibrium:c. Simultaneous game:d. Payoff matrix:e. Nash equilibrium:5

To match the definitions with their corresponding numbers, simply read each definition and then…

Instructions: Enter a numeric response corresponding to the number of the definition listed above. a. A repeated game: b. Cooperative equilibrium: c. Simultaneous game: d. Payoff matrix: e. Nash equilibrium: 5

Instructions: Enter a numeric response corresponding to the number of the definition listed above. a. A repeated game: b. Cooperative equilibrium: c. Simultaneous game: d. Payoff matrix: e. Nash equilibrium: 5

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.9P

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Question

Match the definition to each term listed below.
Number
1
2
3
4
5
6
7
8
9
10
11
Definition
A table that shows the payoffs each firm earns from every combination of firm strategies
An agreement among firms to charge the same price or otherwise not to compete
An option that is better than any alternative option regardless of what the other firm does
An outcome of a strategic game from which neither rival wants to deviate
A game outcome in which players seek to increase their mutual payoff
A practice where one firm initiates a price change and the other firms follow the leader
A game in which the firms choose their strategies at the same time
One firm's gain must equal the other firm's loss
A game in which the sum of
Firms select their optimal strategies in a single time period without regard to possible
interactions in subsequent time periods
A game that occurs more than once
the two firms' outcomes is positive
Instructions: Enter a numeric response corresponding to the number of the definition listed above.
a. A repeated game:
b. Cooperative equilibrium:
c. Simultaneous game:
d. Payoff matrix:
e. Nash equilibrium:
5

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