Question

Multiple choice with tables. Answer 1-6

ABC Inc. Offer Rebate 20, 10 12, 16 No Rebate 30, 0 20, 4 XYZ Corp Offer Rebate No Rebate 1. Which of the following is true about the above game ? a. ABC's dominant strategy is to offer a rebate b. ABCs dominant strategy is not offer a rebate. c. XYZs dominant strategy is to offer a rebate. d. XYZ's dominant strategy is not offer a rebate. e. Both ABC and XYZ have offer a rebate as a dominant strategy Scenario 1 Consider the following game Bull Meat Expand in the West 10, 60 Expand in the Deer Meat 50, 90 Expand in the West Expand in the South 20, 80 40, 50 2 Which of the following is true regarding the game in Scenario 1? a. Only Bull Meat has a dominant strategy b. Only Deer Meat has a dominant strategy c. Both companies have a dominant strategy: expand West. d. Both companies have a dominant strategy: expand South e. Neither company has a dominant strategy

Answer 1

1) considering the above game the true statement one is:

e. Both ABC and XYZ have offer a rebate as a dominant strategy

2) Considering the game of scenario1 the true statement is:

e. Neither company has a dominant strategy.

3) In the game in scenario1:

c. There are two equilibria, either can expand in the west and other can expands in the south.

4) A Nash equilibrium occurs when:

a. Each firm is doing the best it can given its opponents actions.

5) In the language of game theory it is known as:

c. a mixed strategy

6) It can be rational to play tit-for-tat in a repeated prisoner's Dilemma game:

b. If the game is played an infinite number of times, or if it is uncertain how many times it will be played.

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