Practice Questions
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In an extensive form game, if Player A chooses to cooperate while Player B has the option to defect, what will Player B's optimal strategy be using backward induction?
Backward induction means we look at the last move first. Other options are incorrect because Some think cooperation is best because it is kind; Random...
In a sequential game where players can use mixed strategies, what is the significance of subgame perfect equilibrium in determining optimal strategies?
Subgame perfect equilibrium means a player’s plan is optimal in every part of the game. Other options are incorrect because The idea that every subgam...
In a zero-sum extensive form game, if Player A has a strategy that guarantees them a win regardless of Player B's actions, what can be inferred about the strategies employed by both players?
Player A’s plan works no matter what Player B does. Other options are incorrect because Some think B could still win by changing tactics; It is easy t...
In a zero-sum game where two players choose strategies simultaneously, what is the relationship between Nash equilibrium and subgame perfect equilibrium when both players are rational and the game is played in a sequential manner?
Subgame perfect equilibrium means the strategy works in every part of the game. Other options are incorrect because Some students think every Nash equ...
In a game involving two players, Player A has a dominant strategy to choose Action X, while Player B has a mixed strategy involving a probability of playing Action Y. If the payoff matrix indicates that Action X guarantees a payoff of 10 for Player A regardless of Player B's choice, what can be concluded about Player B's optimal strategy?
Because Player A always gets 10 no matter what, Player B's payoff depends only on B's own choices. Other options are incorrect because Thinking that B...
In a sequential move game, if Player A knows Player B will always choose the highest payoff available, how should Player A use backward induction to maximize their own payoff?
Player A looks at the last move that Player B will make and picks the earlier move that gives the best result after that. Other options are incorrect ...
What is the correct sequence of steps to apply backward induction in a sequential game scenario?
First find the last move a player can make. Other options are incorrect because It assumes you know the rewards before you know what moves exist; Star...
In a sequential game, a player observes their opponent's move and chooses their response based on that observation. What is the most likely reason that the observing player achieves a higher payoff by choosing their strategy after observing the first player's action?
Seeing the first player’s move lets the second player pick the best reply. Other options are incorrect because Having extra information does not mean ...
Game Theory : Backward Induction :: Strategy : ?
A dominant strategy always gives a higher payoff, no matter what the opponent does. Other options are incorrect because Random choice does not guarant...
In a game where Player A moves first and Player B observes that move before making their own decision, which of the following scenarios best illustrates the concept of backward induction?
Backward induction means you look at the end of the game and work backwards. Other options are incorrect because This option ignores Player B’s reacti...
In a sequential move game analyzed using backward induction, players anticipate the actions of their opponents to select moves that maximize their own payoff. This technique is primarily used to determine the _____ strategy for each player.
A dominant strategy is one that gives a player the best payoff no matter what the opponent does. Other options are incorrect because Mixed strategies ...
In a sequential game, how does backward induction impact a player's strategy selection?
Backward induction means a player looks ahead to the end of the game and works backward. Other options are incorrect because This idea says a player o...
In a competitive market, two companies, A and B, are deciding whether to launch a new product. Company A moves first and chooses between a high investment or a low investment. Company B observes A's choice and then decides on its own investment level. If A chooses high investment, B can either choose high or low investment. If A chooses low investment, B similarly has the option to choose high or low. How should Company A decide on its investment using backward induction to maximize its payoff?
Company A looks at what B will do after seeing A's choice. Other options are incorrect because Choosing low no matter what ignores B's best reply; Ass...
Which of the following statements are true regarding game theory and backward induction? Select all that apply.
Game theory studies how people make choices when others also choose. Other options are incorrect because The idea that backward induction only works f...
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