Econ

Our preferences are affected by indoctrination through the ​

. ideologies of others.

Lab experiments show a different outcome for the Ultimatum Game compared to the outcome predicted by game theory because​

fairness is important.

An example of a monopolistically competitive firm

fast food industry

What is not an example of a real life zero sum​ game?

free market transaction.

A​ first-mover advantage occurs if​

the first mover to act in a sequential game gets a benefit from doing so.

A collusive agreement between two firms is likely to break down when​ ____________.

the market has little long−term value.

Nash Equilibrium

when players choose strategies that are best responses to the strategy of others.

Identify the key​ assumption(s) made about a Nash equilibrium.

All players understand that other players understand the game. All players understand the game and the payoffs associated with each strategy

How could the game be changed so that in equilibrium the players do trust one​ another?

Allow the players to take revenge.

A​ zero-sum game is when

A​ zero-sum game is when

For a market to be characterized as monopolistically competitive, there must be

Differentiated Products zero economic profits in the long run. many sellers.

Which of the following common features do monopolistically competitive markets and monopolies​ share?

Firms face​ downward-sloping demand curves.

How is a Nash equilibrium different from a dominant strategy​ equilibrium

For a given​ game, there can only be one dominant strategy equilibrium but multiple Nash equilibriums.

Why might game theory not always be an accurate predictor of​ real-world situations?

We do not always know the exact​ payoffs, since payoffs involve attitudes and feelings as well as monetary gains.

An​ extensive-form game is representative of games that​

Moves are made simultaneously in a simultaneous move game and sequentially in an​ extensive-form game.

Monopolistically competitive firms earn zero economic profit in the long run as do perfectly competitive firms. Does this mean that total surplus is maximized in a monopolistically competitive​ market?

No, because firms produce where price is greater than marginal cost

Is a​ player's best response in a game the same as his dominant​ strategy?

Not necessarily. If a player has a dominant​ strategy, then it is his best​ response; however, every best response is not always a dominant strategy.

What happens in a monopolistically competitive market when firms exitfirms exit the​ market

The existing​ firm's demand curve shifts out and becomes steeper

How is a monopolistically competitive market similar to a perfectly competitive​ market?

There are no restrictions on the entry of new firms.

An example of indoctrination is​ ___________.

not smoking due to antismoking campaigns.