Week 2

Question 1

deny and confess?

Answer 1

cooperate and defect

Question 2

what is a dominant strategy?

Answer 2

it is a strategy where, regardless of the chosen strategy of the other player, one’s best response strategy is constant

Question 3

what is a dominated strategy?

Answer 3

one where, regardless of the belief about the other player’s strategy, it is never the best response

Question 4

minimax method?

Answer 4

• applies to zero and constant sum games only

- choose the lowest number in each row and highest in each column. equilibrium is where min = max

Question 5

beliefs in a zero-sum game?

Answer 5

each player believes that their opponent will choose the action that yields the worst consequence for them, for each action taken. each player would choose the least-bad outcome.

Question 6

which payoffs do players want in a minimax game?

Answer 6

P1 wants highest = maximin

P2 wants lowest = minimax

Question 7

game of pure coordination?

Answer 7

best (equal) payoffs when they both choose the same outcome&raquo_space; they just need to coordinate on the same action, doesn’t matter which&raquo_space; their expectations must converge on the focal point

Question 8

assurance game?

Answer 8

• two NEs, one better than the other
• each must have enough certainty that the other is choosing the appropriate action so that they can both rec the best payoff

Question 9

battle of the sexes?

Answer 9

• two NEs, but the players have different preferences

Question 10

features of a chicken game?

Answer 10

• each player has a tough and weak strategy
• two pure strategy NEs
• each player strictly prefers the equilibrium where their opponent chooses their weak strategy = they choose opposing strategies
• payoffs when players are tough are bad for both

Question 11

successive elimination?

Answer 11

eliminate ANY dominated strategies, does not have to be dominated by all other strategies, only one