1. What is the equilibrium of the following game?

a. Up, Left
b. Down, Left
c. Up, Right
d. Down, Right

2. In a strategic game, if the other player has adopted a Nash equilibrium strategy, you should
a. also adopt a Nash equilibrium strategy.
b. use a strategy that delivers you a higher payoff than the Nash equilibrium strategy.
c. use either A or B, depending on the specifics of the game.
d. None of the above.

3. If you find yourself in a repeated prisoner€™s dilemma, which of the following would be appropriate actions?
a. Launch a first strike.
b. Punish your competitor severely.
c. Respond immediately to your competitor€™s actions.
d. Make sure your actions confuse your competitor.

4. The following matrix representation identifies a Nash equilibrium (Black, Even) for a simultaneous-move game between Joe and Sally. If this were a sequential-move game, and Joe had the opportunity to move first, what would be the outcome?

a. Black, Odd
b. Black, Even
c. White, Odd
d. White, Even

5. In the previous game, up to how much, if anything, would Joe be willing to pay to move first?
a. $0
b. $10
c. $80
d.$90

Transcribed Image Text:

MARY Left Right Up Down 10, 10 5, 15 15, 5 12, 12 Gary JOE Odd Joe makes $40 Sally makes $20 Joe makes $90 Sally makes $30 Even Joe makes $80 Black Sally Joe makes $100 White Sally makes $40