#1
What is a dominant strategy in game theory?
A strategy that is the best response regardless of what the other players do
ExplanationOptimal choice irrespective of opponents' decisions.
#2
What is the Nash Equilibrium in game theory?
A strategy profile where no player has an incentive to unilaterally deviate from their chosen strategy
ExplanationStable state where no player benefits from changing their strategy.
#3
Which game theory concept deals with the study of outcomes when multiple players interact?
Non-cooperative game theory
ExplanationAnalyzing strategic interactions without explicit cooperation agreements.
#4
In the Prisoner's Dilemma, what is the optimal strategy for both players?
Betray the other prisoner
ExplanationMutual betrayal yields a better outcome for both players.
#5
What is a zero-sum game in game theory?
A game where one player's gain is exactly balanced by another player's loss
ExplanationTotal gains and losses equate between players.
#6
Which game theory concept deals with situations where cooperation could lead to better outcomes, but there's risk of betrayal?
Prisoner's Dilemma
ExplanationDilemma where cooperation is beneficial, but individual betrayal may be tempting.
#7
What does the concept of 'perfect information' mean in game theory?
Players have complete information about the game, including the strategies chosen by others
ExplanationAll players are fully informed about the game's dynamics and others' choices.
#8
Which game theory concept focuses on situations where cooperation benefits all players, but self-interest may lead to defection?
Social dilemma
ExplanationDilemma where self-interest may undermine collective cooperation.
#9
What does 'minimax' refer to in game theory?
Maximizing the minimum possible gain
ExplanationChoosing strategies to minimize potential losses in worst-case scenarios.
#10
What does the 'invisible hand' refer to in game theory?
A metaphor for the self-regulating nature of markets
ExplanationMarket forces guiding individuals to unintentionally promote collective well-being.
#11
What is a mixed strategy in game theory?
A strategy where players choose their actions randomly according to a probability distribution
ExplanationRandomized selection of actions based on probability distributions.
#12
What is the essence of backward induction in game theory?
Starting from the end of the game and reasoning backward to determine optimal strategies
ExplanationAnalyzing games by working backward from the end to find optimal strategies at each stage.
#13
What is a subgame perfect equilibrium in game theory?
A strategy where no player has an incentive to unilaterally deviate from their chosen strategy in any subgame
ExplanationStable strategy across all subsets of the game.
#14
What is the concept of a dominant strategy equilibrium in game theory?
A situation where one player's strategy is dominant and other players have no incentive to deviate from their strategies
ExplanationStable state where one player's strategy dominates, discouraging others from deviation.
#15
What is the 'minimax theorem' in game theory?
A theorem that provides a method to determine the optimal strategy for a player in a zero-sum game
ExplanationTheoretical approach for finding optimal strategies in zero-sum games.