Econ 202 Module 12.1

Which of the following its true of a simultaneous move game?

All relevant benefits and costs of each action are taken into account

What is the dominant strategy in the prisoner's dilemma?

Each prisoner confesses because this is the rational action to pursue

What is a prisoner's dilemma?

a game in which players act in rational, self-interested ways that leave everyone worse off

In a simultaneous move game,

each player has to make his choice without knowing his rival's choice

A player has a dominant strategy when:

she has only one best response to every possible strategy of the other player

The study of how people make decisions in situations where attaining their goals depends on their interactions with others is called

game theory

A dominant strategy

is one that is the best for a firm, no matter what strategies other firms use

A dominant strategy

results in a higher payoff irrespective of the strategy chosen by the other player

A __________ is a complete plan describing how a player will act

strategy

A payoff matrix shows

the return from each action that players can take in a game