Topic 5 Flashcards
____sequential-move games, players take turns, and each player observes what his or her rival did before having to move.
sequential-move games
_____simultaneous-move games, each player decides on her strategy before knowing the decisions of other players. To analyze these games, we use the matrix or strategic form of a game.
imultaneous-move games
Which of the following is true of a Nash equilibrium?
The Nash equilibrium is the likely outcome of a game.
Nash Equlibrium example
-1,1
____strategic view of bargaining, in which the outcome depends on who moves first and who can commit to a position.
strategic view of bargaining
This____tells you that if you can decrease your own gain to reaching agreement by improving your outside option, you become a tougher bargainer because you have less to gain by reaching agreement.
nonstrategic view of bargaining
_____a variable whose values (outcomes) are random and therefore unknown (Uncertainty).
Random variable
The expected value of an uncertain outcome is:
The sum of the probabilities times the random variables
occurs when the treatment group differs systematically from the control group.
selection bias
_____of observations to treatment and control groups is designed to eliminate selection bias, any systematic difference between the two groups.
randomized experiment
What represents “gold standard”
randomized experiences
Randomized experiments represent the “gold standard” in data analytics because:
Selection bias is eliminated since there are no systematic differences between treatment and control groups.
The key determinant of a careful observational study is:
The control group is created to mimic the treatment group without systematic differences.
If your analysis leads you to reject a hypothesis that is actually correct:
Type 1 Error
A way to deal with uncertainty is:
Because contingencies can occur that had not been anticipated, one should add enough flexibility into your strategy that permits responding as they emerge.
When there are no systematic differences between treatment and control groups:
there is no selection bias.
In observational studies:
The observations for the control group are determined after the treatment has been observed.
_____in this auction type, bidders submit increasing bids until only one bidder remains. The item is awarded to the last remaining bidder.
oral bidder or english
____losing bidders lead to ___ winning bids.
Stronger, higher
Two bidders are participating in an English auction. The price will be primarily determined by
Losing bidder
a sealed-bid auction in which the item is awarded to the highest bidder, but the winner pays only the second-highest bid.
Vickery auction or econd price auction
a____ in which the highest bidder gets the item at a price equal to his bid.
sealed-bid first-price auction
Collusion is more likely in___ auctions than in ___auctions.
oral, seal bid
____the value is the same for each bidder, but no one knows what it is for sure. Each bidder has only an estimate of the unknown value.
common-value auction
____arises in common-value auctions and refers to the fact that the “winner” of the auction is usually the bidder with the highest estimate of the item’s value
winner’s curse
Winners curse is likely in____auctions?
common value
Market ordered highest to lowest
monopoly, oligopoly, perfect competition
Oligopoly prices are typically higher than in perfect competition but lower than in a monopoly. Oligopolies might like to act like monopolists and collude, but in practice, collusion is difficult to maintain.
