#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
Which game theory concept refers to the situation where one player's gain directly corresponds to another player's loss?
Zero-sum game
ExplanationTotal gains and losses remain constant, with one player's gain offsetting another's loss.
#10
What is the essence of the 'Tragedy of the Commons' in game theory?
Individuals acting in their own self-interest deplete a shared resource, leading to collective ruin
ExplanationSelfish exploitation of shared resources leading to overall degradation.
#11
In game theory, what does the 'principle of dominance' state?
A player should avoid choosing a strategy dominated by another strategy
ExplanationGuideline advising players to avoid inferior strategies dominated by others.
#12
Which of the following is a characteristic of cooperative game theory?
Players form coalitions and negotiate to achieve better outcomes
ExplanationPlayers collaborate in groups, negotiating for mutually beneficial results.
#13
What is the essence of the 'hawk-dove' game in game theory?
A game where players must decide whether to escalate or de-escalate a conflict
ExplanationGame involving strategic decisions on conflict escalation or de-escalation.
#14
In game theory, what is the essence of a symmetric game?
A game where players have the same payoff structure and options
ExplanationGames with identical payoff structures and choices for all players.
#15
What is the significance of the concept of focal points in game theory?
Focal points help players coordinate on mutually beneficial outcomes in the absence of communication
ExplanationAiding players in coordinating on beneficial outcomes without explicit communication.
#16
What is a subgame in game theory?
A game within a larger game that starts at a decision node
ExplanationA smaller game within the overall game, initiated at a decision point.
#17
What does the concept of 'rationality' mean in game theory?
Players always choose the strategy with the highest possible payoff
ExplanationPlayers consistently select strategies offering the maximum potential payoff.
#18
What does 'minimax' refer to in game theory?
Maximizing the minimum possible gain
ExplanationChoosing strategies to minimize potential losses in worst-case scenarios.
#19
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.
#20
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.
#21
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.
#22
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.
#23
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.
#24
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.
#25
What is the concept of mixed-motive games in game theory?
Games where players have mixed motives, such as cooperation and competition, simultaneously
ExplanationGames involving simultaneous cooperation and competitive motives for players.