Master Game Theory Concepts: Enhance Your Strategic Thinking Skills

Question 1

In non-cooperative games, which of the following is NOT a characteristic of a Nash Equilibrium?

Accepted Answer

The outcome is not necessarily Pareto efficient, maximizing the collective gains of all players.

Answer

No player can improve their outcome by changing their strategy, assuming other players' strategies remain unchanged.

Answer

It represents a stable outcome where no player has an incentive to deviate from their chosen strategy.

Question 2

Answer Options: Which of the following is NOT a characteristic of a cooperative game?

Accepted Answer

Players behave strategically to maximize their individual payoffs.

Answer

Players can make binding agreements.

Answer

Players have complete information.

Answer

The outcome is always Pareto efficient.

Question 3

Language Accessibility: The minimax theorem guarantees that in any two-player zero-sum game:

Accepted Answer

There exists at least one saddle point.

Answer

Both players have a dominant strategy.

Answer

The game has a unique Nash Equilibrium.

Answer

The optimal strategies for both players are always pure.

Question 4

Correctness and Precision of the Answer: Which of the following is a key assumption in the Prisoner's Dilemma game?

Accepted Answer

Players are rational and self-interested.

Answer

Players can communicate with each other before making their choices.

Answer

The game is played only once.

Answer

The payoffs to both players are symmetric.

Question 5

Curriculum Context: In a repeated game, the concept of backward induction involves:

Accepted Answer

Reasoning backwards from the last stage to determine optimal strategies.

Answer

Considering only the payoffs in the current stage.

Answer

Assuming that players are perfectly cooperative.

Answer

Ignoring the potential impact of future actions.

Question 6

Language Accessibility: In a game with incomplete information, players:

Accepted Answer

Have uncertainty about the actions and payoffs of other players.

Answer

Have perfect knowledge of all other players' actions and payoffs.

Answer

Can communicate and share information freely.

Answer

Never have to consider the beliefs of other players.

Question 7

Which of the following is a characteristic of a Nash equilibrium?

Accepted Answer

No player can unilaterally improve their outcome by changing their strategy

Answer

It is a cooperative solution where all players benefit.

Answer

It is a dynamic solution that can change over time.

Answer

It is always the most efficient outcome for all players.

Question 8

Who is credited with developing the concept of Nash equilibrium?

Accepted Answer

John Nash

Answer

John von Neumann

Answer

Thomas Schelling

Answer

Robert Aumann

Question 9

In a non-cooperative game, the players cannot make binding agreements.

Accepted Answer

True

Answer

False

Question 10

In a non-cooperative game theory scenario, the payoff to each player depends on:

Accepted Answer

Both their own strategy and the strategies of their opponents

Answer

Their own strategy only

Answer

The strategies of their opponents only

Answer

Neither their own strategy nor the strategies of their opponents

Question 11

What is the minimax theorem primarily utilized for?

Accepted Answer

Determining the optimal strategy for a player in a zero-sum game

Answer

Finding the Nash equilibrium of a game

Answer

Calculating the Pareto optimal solution to a game

Answer

Identifying the dominant strategy for a player in a game

Question 12

In the context of a Nash equilibrium, each player's strategy can be described as:

Accepted Answer

Optimal given the strategies of other players.

Answer

Dominant and maximizing their payoff.

Answer

Weakly dominant and maximizing their payoff.

Answer

Random and unpredictable.

Question 13

The fundamental distinction between cooperative and non-cooperative games lies in:

Accepted Answer

The ability of players to communicate and form binding agreements

Answer

The level of information available to players about the game

Answer

The guarantee of win-win outcomes for all players

Answer

The number of players involved being odd or even

Question 14

A dominant strategy in game theory is defined as a strategy that:

Accepted Answer

Maximizes a player's payoff regardless of the strategies chosen by other players

Answer

Minimizes a player's loss regardless of the strategies chosen by other players

Answer

Is always the best choice for a player, irrespective of the situation

Answer

Requires the cooperation of other players to be effective

Question 15

In cooperative games, which of the following is a common method used to find a solution?

Accepted Answer

Shapley value

Answer

Backward induction

Answer

Dominance solvability

Answer

Subgame perfect Nash equilibrium

Question 16

In signaling games, the receiver's belief about the sender's private information is known as a:

Accepted Answer

Posterior belief

Answer

Prior belief

Answer

Nash equilibrium

Answer

Dominant strategy

Question 17

In repeated games, a factor that can promote cooperation is:

Accepted Answer

High discount factor

Answer

Low probability of future interactions

Answer

Lack of reputation effects

Answer

Randomization of player strategies

Question 18

The Nash equilibrium is a set of strategies where:

Accepted Answer

No player can improve their payoff by unilaterally changing their strategy

Answer

All players receive the same payoff

Answer

The total payoff to all players is maximized

Answer

The game is in a state of perfect information

Question 19

Which of the following is NOT a type of strategic interaction?

Accepted Answer

Natural monopoly

Answer

Oligopoly

Answer

Auction

Answer

Duopoly

Question 20

In cooperative games, the players:

Accepted Answer

Can communicate and make binding agreements

Answer

Can only act independently

Answer

Always have complete information about the game

Answer

Are always competing for the same resource

Question 21

An example of a coordination game is:

Accepted Answer

Battle of the sexes

Answer

Prisoner's dilemma

Answer

Bertrand duopoly

Answer

Cournot duopoly

Question 22

In a zero-sum game, the minimax theorem states that a rational player will choose the strategy that:

Accepted Answer

Minimizes their maximum loss.

Answer

Maximizes their minimum gain.

Answer

Maximizes their maximum gain.

Answer

Minimizes their minimum loss.

Question 23

In a sealed-bid auction, bidders:

Accepted Answer

Submit their bids simultaneously and independently.

Answer

Bid in a sequential order.

Answer

Can communicate with each other before bidding.

Answer

Are always fully informed about the other bidders' bids.

Question 24

The core of a cooperative game is the set of all imputations that are:

Accepted Answer

Both Pareto efficient and individually rational.

Answer

Pareto efficient.

Answer

Individually rational.

Answer

Agreed upon by all players.

Question 25

Which of the following is NOT an essential element of a non-cooperative game?

Accepted Answer

Communication

Answer

Players

Answer

Strategies

Answer

Payoffs

Question 26

The Nash equilibrium of a game is defined as the set of strategies where:

Accepted Answer

No player can unilaterally improve their payoff given the strategies of the other players.

Answer

Each player maximizes their payoff.

Answer

Each player minimizes their payoff.

Answer

The total payoff for all players is maximized.

Question 27

Which of the following is NOT a type of strategic interaction?

Accepted Answer

Linear regression

Answer

Coordination games

Answer

Prisoner's dilemma

Answer

Cournot model

Question 28

The Cournot model is used to analyze:

Accepted Answer

Competition between firms in a market.

Answer

Bargaining between two parties.

Answer

Auctions with multiple bidders.

Answer

Voting systems with multiple candidates.

Question 29

The concept of subgame perfection is used to:

Accepted Answer

Refine the Nash equilibrium of a game.

Answer

Determine the optimal strategy for a player.

Answer

Calculate the payoffs for all players.

Answer

Predict the outcome of a game with incomplete information.

Question 30

In a sequential game, the order of moves matters because players:

Accepted Answer

Can anticipate the actions of their opponents.

Answer

Cannot observe the actions of their opponents.

Answer

Are making simultaneous decisions.

Answer

Have perfect information about the game.

Question 31

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

Accepted Answer

Linear regression

Answer

Nash equilibrium

Answer

Dominant strategy

Answer

Bayesian inference

Question 32

The Nash equilibrium is a situation where:

Accepted Answer

No player can improve their payoff by changing their strategy, given the strategies of the other players

Answer

All players are making optimal decisions

Answer

The game is over and a winner has been declared

Answer

The players are cooperating to achieve a mutually beneficial outcome

Question 33

Which of the following is an example of a zero-sum game?

Accepted Answer

Chess

Answer

Tennis

Answer

Monopoly

Answer

Negotiation

Question 34

The minimax theorem:

Accepted Answer

Provides a way to find the optimal strategy for a player in a two-person, zero-sum game

Answer

Guarantees that a Nash equilibrium exists in every game

Answer

Is used to solve cooperative games

Answer

Is not applicable to games with complete information

Question 35

In a sequential game:

Accepted Answer

Players make their decisions in a predetermined order

Answer

Players make their decisions simultaneously

Answer

Players can fully observe the actions of other players

Answer

There is no uncertainty about the payoffs

Question 36

Evolutionary game theory:

Accepted Answer

Studies how strategies evolve over time in a population of players

Answer

Assumes that players are always rational and self-interested

Answer

Is only applicable to cooperative games

Answer

Requires complete information about the game

Question 37

Which is a core concept in game theory?

Accepted Answer

Nash equilibrium

Answer

Marginal utility

Answer

Kendall correlation coefficient

Answer

Computable general equilibrium

Question 38

In a non-cooperative game, players...

Accepted Answer

Act independently to maximize their own gains

Answer

Take turns making decisions

Answer

Collaborate to achieve a common objective

Question 39

Nash equilibrium occurs when...

Accepted Answer

No player can improve their payoff by changing their strategy unilaterally

Answer

All players adopt the same strategy

Answer

The collective payoffs of all players is maximized

Question 40

In a zero-sum game, the sum of payoffs to all players is...

Accepted Answer

Zero

Answer

Negative

Answer

Non-zero

Answer

Positive

Question 41

In the context of game theory, the term 'payoff matrix' refers to...

Accepted Answer

A table displaying the payoffs for each player associated with every combination of strategies

Answer

A diagram representing the potential outcomes of a game

Answer

A set of regulations governing gameplay