1) In a prisoner\'s dilemma game a dominant strategy would mean that one of the

ID: 1091800 • Letter: 1

Question

1) In a prisoner's dilemma game a dominant strategy would mean that one of the players...

a) Follows the moves of the opponent no matter what the opponent does

b) Knows the payoff matrix outcomes while the other does not

c) Is sure to come out with the most preferred outcome no matter what the other does

d) Will benefit most from one particular move no matter what the opponent does

2) In game theory, a player follows its maximin strategy is the option that

a) makes the lowest possible payoff as large as possible

b) gives the highest possible payoff.

c) makes the highest possible payoff as large as possible

d) allow the player to maximize his/her losses.

3) You are given the four payout option show below for a coin toss. If you are using a maximin strategy, which option do you choose?

a) Heads you win $500, tails you lose $100

b) Heads you win $1,000, tails you lose $110

c) Heads you win $50, tails you lose $25

d) Heads you win $5, tails you lose $0

4) A tit for tat strategy has the best chance of working if

a) A transaction is a one time event

b) The interaction between participants is frequent and open-ended

c) The interaction is frequent, but has a specific end date

d) Neither side in the interaction trusts the other's commitment to the strategy

In the payoff matrix above the Nash equilibrium for the game is (note in grid that first number is for A and second number for B)

a) for both players to follow strategy A

b) for both players to follow strategy B

c) for player 2 to follow strategy A and for player 2 to follow strategy B

d) there is no Nash equilibrium in this game