Game Theory Quizzes: Test Your Understanding of Strategic Interactions

Question 1

In a non-cooperative game, players' actions are:

Accepted Answer

Independent.

Answer

Dependent on the actions of other players.

Answer

Enforced by a central authority.

Answer

Communicated to each other.

Question 2

In a bargaining situation, the disagreement point represents the:

Accepted Answer

Outcome that the players will receive if they fail to reach an agreement.

Answer

Best possible outcome for each player.

Answer

Worst possible outcome for each player.

Answer

Average of all possible outcomes.

Question 3

Which of the following games is an example of a Prisoner's Dilemma?

Accepted Answer

Chicken

Answer

Rock-paper-scissors

Answer

Ultimatum game

Answer

Stag hunt

Question 4

Which of the following is not a fundamental characteristic of a Nash equilibrium?

Accepted Answer

It is always efficient, maximizing the total payoff for all players in the game.

Answer

No player can unilaterally improve their outcome by changing their strategy, given the strategies of the other players.

Answer

It represents a set of strategies where each player's strategy is a best response to the strategies of the other players.

Answer

It may not be unique, meaning that there can be multiple Nash equilibria in the same game.

Question 5

Which assumption is central to the theory of cooperative games?

Accepted Answer

Players can form binding agreements to cooperate and share payoffs.

Answer

Players are purely competitive and solely seek to maximize their own payoffs.

Answer

All information about the game and the players' strategies is publicly known.

Answer

The outcome of the game is guaranteed to be Pareto efficient.

Question 6

Game theory has found applications in various economic contexts. Which of the following is NOT a potential application?

Accepted Answer

Predicting the outcomes of sporting events and competitions

Answer

Examining competition in markets and industry dynamics

Answer

Designing and analyzing auctions and bidding mechanisms

Answer

Facilitating negotiations and agreements in international relations

Question 7

Which solution concept in cooperative game theory aims to distribute payoffs fairly among all players?

Accepted Answer

Shapley value

Answer

Nash equilibrium

Answer

Kalai-Smorodinsky solution

Answer

Minimax theorem

Question 8

In a Nash equilibrium, which of the following is NOT a defining characteristic?

Accepted Answer

The game is played repeatedly over an infinite time horizon.

Answer

Each player knows the strategies of the others.

Answer

Each player acts rationally to maximize their payoff.

Answer

The strategies of all players are mutually consistent.

Question 9

In a non-cooperative game, which of these is NOT a defining characteristic:

Accepted Answer

Players can make binding agreements.

Answer

Players have conflicting interests.

Answer

Players make decisions without knowing the strategies of others.

Answer

The outcome depends on the strategies of all players.

Question 10

In a Nash equilibrium, each player's strategy:

Accepted Answer

Maximizes their payoff given the strategies of other players.

Answer

Minimizes their payoff given the strategies of other players.

Answer

Is not affected by the strategies of other players.

Answer

Is always the same as the other players' strategies.

Question 11

In a bargaining game, the threat point refers to:

Accepted Answer

The outcome that would occur if no agreement is reached.

Answer

The minimum acceptable outcome for each player.

Answer

The maximum possible outcome for both players.

Answer

The Nash equilibrium outcome of the game.

Question 12

A dominant strategy in a game is one that:

Accepted Answer

Always yields the highest payoff for a player, regardless of the strategies of others.

Answer

Can be surpassed by another strategy if other players change their strategies.

Answer

Is always the same as the Nash equilibrium strategy.

Answer

Only exists in cooperative games.

Question 13

In a sequential game, players:

Accepted Answer

Move in a specified order and can observe the actions of earlier players.

Answer

Move simultaneously and do not observe others' actions.

Answer

Have complete knowledge of all other players' strategies.

Answer

Cannot make any binding agreements with each other.

Question 14

Which of the following is NOT a fundamental concept in game theory?

Accepted Answer

Bargaining

Answer

Nash equilibrium

Answer

Dominant strategy

Answer

Mixed strategy

Question 15

Which of the following is NOT a characteristic of a Nash equilibrium?

Accepted Answer

The outcome is Pareto optimal.

Answer

No player can unilaterally improve their payoff by changing their strategy.

Answer

Each player's strategy is a best response to the strategies of the other players.

Answer

The equilibrium may not be unique.

Question 16

What is the main difference between a cooperative and a non-cooperative game?

Accepted Answer

In a cooperative game, players can make binding agreements, while in a non-cooperative game they cannot.

Answer

In a non-cooperative game, players have complete information, while in a cooperative game they do not.

Answer

In a cooperative game, the outcome is always efficient, while in a non-cooperative game it is not.

Answer

In a non-cooperative game, players are always rational, while in a cooperative game they are not.

Question 17

Which of the following is NOT a potential application of game theory?

Accepted Answer

Predicting the weather

Answer

Analyzing competition in markets

Answer

Designing auctions

Answer

Studying international relations

Question 18

Which of the following is not a key characteristic of a Nash equilibrium in game theory?

Accepted Answer

It maximizes the joint profits of all players.

Answer

It is a stable outcome, where no player has an incentive to change their strategy.

Answer

It represents an optimal strategy for each player, given the strategies of the other players.

Question 19

In the context of a cooperative game, the set of possible payoffs to the players is:

Accepted Answer

Not fixed in advance.

Answer

Independent of the actions of the players.

Answer

Solely determined by the strategies of the players.

Answer

Fixed and unchangeable.

Question 20

Which of the following is a fundamental assumption underlying game theory?

Accepted Answer

Players make rational decisions.

Answer

Players have access to complete information about the game.

Answer

Players have an infinite amount of time to make decisions.

Answer

Players are inherently risk-averse.

Question 21

In the context of a two-player zero-sum game, the sum of the payoffs to the players is:

Accepted Answer

Always zero.

Answer

Varies depending on the strategies of the players.

Answer

Always positive.

Answer

Always negative.