#1
What does the 'Minimax' strategy in game theory entail?
Minimizing one's own potential loss
ExplanationStrategy aimed at reducing potential personal losses.
#2
Which of the following is NOT an application of game theory?
Astronomy
ExplanationField unrelated to the practical applications of game theory.
#3
Which branch of mathematics is heavily utilized in game theory?
Graph theory
ExplanationMathematical field essential for analyzing strategic interactions.
#4
What is 'Game Theory' primarily concerned with?
Modeling interactions between rational decision-makers
ExplanationAnalytical framework for understanding strategic interactions among rational agents.
#5
In game theory, what does the 'Nash Equilibrium' represent?
A situation where no player has an incentive to change their strategy unilaterally
ExplanationStable strategy where no player benefits from changing their own approach.
#6
Which of the following is NOT a basic concept in game theory?
Normal distribution
ExplanationStatistical distribution concept unrelated to game theory fundamentals.
#7
What is a dominant strategy in game theory?
A strategy that is superior regardless of the choices of other players
ExplanationOptimal strategy regardless of opponents' decisions.
#8
What is the 'Prisoner's Dilemma' in game theory?
A scenario where each player individually chooses to betray the other, even though both would be better off cooperating
ExplanationClassic scenario highlighting the tension between individual and collective rationality.
#9
What does 'Pareto Efficiency' signify in game theory?
A state where no player can be made better off without making another player worse off
ExplanationAllocation where no one can gain without causing someone else to lose.
#10
What is 'Sequential Rationality' in game theory?
A principle stating that players make optimal decisions at each step, taking into account the decisions of others
ExplanationDecision-making principle considering current and future actions of all players.
#11
What does 'Bayesian Nash Equilibrium' involve in game theory?
A strategy where players update their beliefs based on observed actions
ExplanationStrategy incorporating Bayesian updating of beliefs for optimal decision-making.
#12
What is 'Coase Theorem' in game theory?
A theorem concerning the efficient allocation of resources in the presence of externalities
ExplanationPrinciple addressing optimal resource allocation amidst external effects.
#13
What is 'Stackelberg competition' in game theory?
A situation where one player makes decisions first, and the other player(s) follow
ExplanationStrategic interaction where one player sets the course, and others react.
#14
What does the 'Centipede game' represent in game theory?
A sequential game where players take turns making decisions
ExplanationGame structure involving sequential decision-making.