Match the definition to each term listed below. Definition Number A table that nhows the payoffa each firm earna from every combination of firm strategies An agreement among firma to charge the same price or otherwise not to compete An option that is better than any alternative option regardless of what the other firm does An outcome of a strategic game from which neither rival wants to deviate A game outcome in which players neek to increane their mutual payoff A practice where one firm initiaten a price change and the other firms follow the leader A game in which the firma choose their strategies at the same time One firm's gain must equal the other firm's loss A game in which the sum of the two firma outcomes is positive Firma select their optimal strategies in a single time period without regard to possible interactions in subsequent time periods A game that occurs more than once 1. 4. 6. 7. 10 11 Instructions: Enter a numeric response corresponding to the number of the definition listed above. a. A repeated game: b. Cooperative equlibrium: c. Simultaneous game: d. Payoff matrix: e. Nash equilibrium:

What is the name for the classic game theory problem covered in the text and lectures where two players with identical payoffs have incentive to collude since the competitive equilibrium leaves both players worse off than colluding? the prisoner's dilemma O nash equilibrium the two firm problem collude or compete

Up ROWENA Straight Down Rowena's Straight dominates Down. Left 2,9 6,4 The game is dominance solvable. 4,3 COLIN Middle The game has a unique Nash equillibrium. 5,5 9,2 Select the incorrect statement about this simultaneous move game. 2,7 Right 6,2 5,3 7,1 The joint payoff, i.e., sum of payoffs, in a Nash equilibrium is not the greatest compared to that in other non equilibrium strategy combinations.

Number Definition A table that shows the payoffs each firm earns from every combination of firm strategies 1 An agreement among firms to charge the same price or otherwise not to compete An option that is better than any alternative option regardless of what the other firm does An outcome of a strategic game from which neither rival wants to deviate A game outcome in which players seek to increase their mutual payoff A practice where one firm initiates a price change and the other firms follow the leader A game in which the firms choose their strategies at the same time One firm's gain must equal the other firm's loss A game in which the sum of the two firms' outcomes is positive 4 6. 7 8. 9. Firms select their optimal strategies in a single time period without regard to possible interactions in subsequent time periods 10 11 A game that occurs more than once Instructions: Enter a numeric response corresponding to the number of the definition listed above. a. Collusion: b. Zero-sum…