Game Theory

What is an Oligopoly?

• Market structure where only two firms control all or most of the market for a product or service

• Market structure where two or more firms control most of the market and produce similar products or services

• A special type of market where a single producer controls the supply for a product or service

• Market structure where a large number of firms are in charge of selling or consuming similar products or services

What's the best way to define Nash Equilibrium?

• A single player obtains the overall benefit

• Both players do not obtain any benefit

• Both players satisfy their desire outcomes

• Both players satisfy the same desired outcome

How is a payoff matrix used?

• To show how the reward or profit of two firms depend on the actions of each other

• Shows the difference between two firms actions

• To show how the reward or profit of two or more firms depend on the actions of each other

• Shows the similarities between two firms actions

What is a dominant strategy?

• ^{Is a strategy that indicates the highest payoffs or best results for both players}

• ^{Is a strategy that indicates the highest payoff or best result for a player}

• ^{Is a strategy that determine who was the "winner"}

• ^{Is a strategy that indicates which player takes control over the market}

How is a payoff matrix read?

• Firm A is horizontal → read vertically

  Firm B is vertical → read horizontally

• Firm A is horizontal → read horizontally

  Firm B is vertical → read vertically

• Firm B is horizontal → read horizontally

  Firm A is vertical → read vertically

• Firm A is horizontal → read horizontally

  Firm B is vertical → read horizontally

What pairs create Nash Equilibrium?

• White's live band 800

  Gray' s DJ: 100

• White's DJ: 100

  Gray' s live band: 800

• White's live band: 400

  Gray' s live band: 400

• White's DJ: 500

  Gray' s DJ: 500