Practice Midterm 1

Which of the following is the best definition of a strategy?
1. A strategy is an action that is always a best response to any choices made by other players.
2. A strategy is an action that is a player’s best possible choice, given what other players are choosing to do.
3. A strategy is an action that is chosen based on a player’s expectation about the choices made by others.
4. A strategy is a list specifying a move for every point in a game where a player might be required to take an action in any possible play of the game.
In which of the following games does player A have the same ordinal preferences?
title="OrdinalComparisons" width="504" height="321" style="display: block; margin-left: auto; margin-right: auto; text-align: center;">
1. (i) and (ii)
2. (iii) and (iv)
3. none
4. all
How many strategies does Player 1 have in the following extensive form game?
1. Four
2. Three
3. Two
4. It depends on the choice made by player 2
Which statement is true about the following normal form game?
1. (Up, Left) is a Nash Equilibrium
2. (Up, Right) is a Nash Equilibrium
3. (Down, Left) is a Nash Equilibrium
4. (Down, Right) is a Nash Equilibrium
Which of the following statements is true?
1. A dominant strategy is another name for a best response.
2. Best responses are dominant strategies in sequential move games.
3. Contingent strategies lead to payoffs that depend on the choices made by other players.
4. In a dominant strategy equilibrium all players choose best responses to every strategy available to the other players.
In the game of chicken
1. Players want to coordinate and choose the same action
2. Players want to coordinate and choose different actions
3. There is no Nash Equilibrium
4. Players have a dominant strategy to be aggressive
Social Dilemmas
1. Can be solved if everyone recognises the benefit of getting along
2. Have a dominant strategy equilibrium that is efficient
3. Have a dominant strategy equilibrium that is not efficient
4. Are games where players cannot decide what strategy to choose
Matching Pennies
1. Is a game where all players would prefer to move first
2. Has a Nash Equilibrium in which players both choose Head
3. Has a dominant strategy equilibrium
4. Has no pure strategy Nash Equilbrium
How many subgames are there in the following game?
1. One
2. Two
3. Three
4. Four
Subgame perfection requires
1. No player to be surprised by the choices made by others
2. Strategy choices to constitute a Nash equilibrium on every subgame
3. All players to use backwards induction to solve a subgame
4. Players to choose Nash Equilibirum strategies in a sequential game