Game Strategies

Question 1

Strategic form

Answer 1

1 player cannot observe the actions of the other before making their move

Question 2

Dominant strategy

Answer 2

a player will engage in no matter what the other player does

Question 3

christners dilemma

Answer 3

players cannot communicate to arrive at the best outcome

Question 4

Nash equilibrium

Answer 4

once players engage in a dominant strategy, neither player will unilaterally leave that outcome

Question 5

What did Paul Sweezy explain?

Answer 5

why prices tend to remain stable at the prevailing price by competiting oliogostic firms

MC=MR

Question 6

Kinked demand curve

Answer 6

lower case demand curve reflecting the reaction by other firms to pricing decisions by a given firm `

Question 7

Prevailing price

Answer 7

sticking to a price because moving up or down leaves the firm worst off

Question 8

Collusion

Answer 8

practice of 2 or more otherwise competitive firms agreeing to restrict output in order to raise prices