#1
In game theory, what does 'payoff' refer to?
The benefits or gains from playing the game
ExplanationOutcome received by a player based on the actions taken.
#2
In game theory, what does 'zero-sum game' mean?
A game where one player's gain is equal to another player's loss
ExplanationTotal gains and losses in the game sum up to zero.
#3
In game theory, what is the 'Folk Theorem' about?
A theorem about the behavior of players in repeated games
ExplanationPredicts possible outcomes in repeated games based on strategies and rationality.
#4
What is the 'Stag Hunt' game in game theory?
A game where players cooperate for maximum collective gain
ExplanationPlayers balancing between individual gain and collective benefit through cooperation.
#5
What is the Nash equilibrium in game theory?
A stable state where no player has an incentive to deviate
ExplanationA situation where no player can benefit by changing their strategy unilaterally.
#6
Which game theory concept involves two players making simultaneous decisions without knowing the other player's choice?
Simultaneous game
ExplanationPlayers make decisions simultaneously without knowledge of each other's actions.
#7
What is a 'mixed strategy' in game theory?
A strategy that involves using a combination of pure strategies with specific probabilities
ExplanationA strategy that involves randomizing among different pure strategies.
#8
In cooperative game theory, what is a 'coalition'?
A group of players forming alliances to ensure mutual success
ExplanationA group of players who collaborate to achieve common goals.
#9
What is the 'Pareto efficiency' concept in game theory?
A state where no player can be made better off without making another player worse off
ExplanationA situation where no redistribution of resources can make everyone better off.
#10
In repeated games, what is the 'tit-for-tat' strategy?
A strategy where players mimic their opponent's previous move
ExplanationCooperative strategy where a player reciprocates the opponent's last move.
#11
What does the concept of 'dominant strategy' mean in game theory?
A strategy that is always the best regardless of the opponent's choice
ExplanationA strategy that yields the highest payoff regardless of what the other players do.
#12
What is the 'Prisoner's Dilemma' in game theory?
A situation where betraying the other player leads to the best individual outcome
ExplanationA scenario where cooperation leads to a suboptimal outcome due to self-interest.
#13
What does the concept of 'subgame perfect equilibrium' imply in extensive-form games?
A strategy that is optimal at every decision point in the game
ExplanationA strategy that represents a Nash equilibrium at every possible point of play.
#14
What is the 'centipede game' in game theory?
A sequential game with multiple rounds where players can choose to cooperate or betray
ExplanationA game where players have sequential moves and can choose to cooperate or defect.
#15
What is the 'Battle of the Sexes' game in game theory?
A simultaneous game with conflicting preferences between players
ExplanationA game where players have different preferences but prefer coordination over disagreement.
#16
What does 'asymmetric information' refer to in game theory?
A situation where one player has more information than the other
ExplanationUnequal knowledge between players affecting decision-making.