Part 1.1.2 The Rules of the Game; Dominant Strategies: the Prisoner's Dilemma

Question 1

best response or best reply

Answer 1

the strategy that yields the greatest payoff given the combination of strategies of every other player.

Question 2

dominant strategy

Answer 2

a strategy that is a player’s strictly best response to any of strategies the other players might pick in the sense that whatever strategies they pick, his payoff is the highest of any strategy.

Question 3

dominated strategies

Answer 3

his inferior strategies, non dominant strategy.

Question 4

dominant strategy equilibrium

Answer 4

is a strategy combination consisting of each player’s dominant strategy.

Question 5

cooperative game

Answer 5

is a game in which the players can make binding commitments.

Question 6

noncooperative game

Answer 6

is a game in which the players can not make a binding commitment.

Question 7

side payments

Answer 7

transfers between players that change the prescribed payoffs.

Question 8

A cooperative game without conflict

Answer 8

Members of a work force choose which of equally arduous tasks to undertake to best coordinate with each other.

Question 9

A cooperative game with conflict:

Answer 9

Bargaining over price between a monopolist and a monopsonist.

Question 10

A noncooperative game with conflict:

Answer 10

The Prisoner’s Dilemma.

Question 11

A noncooperative game without conflict:

Answer 11

Two companies set a product standard without communication.