Game theory

Question 1

Non strategic situations

Answer 1

Decision making not affected by other people’s behaviour. Monopoly and perfect competition

Question 2

Strategic situations

Answer 2

Decision based situation depending on other agents decisions as well as your own. imperfect competition

Question 3

Simultaneous games

Answer 3

normal form, decisions made simultaneously.

Question 4

Sequential games

Answer 4

moves made one after the other, players see the move before making their choice.

Question 5

Strict dominance

Answer 5

One strategy always yields a better outcome regardless of the other player. Confessing in the prisoner’s dilemma

Question 6

Iterated dominance

Answer 6

Eliminating strategies that are strictly dominated by other strategies until you are left with the Nash equilibrium