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.
