Prisoner's Dilemma

A dominant strategy

• Gives the best outcome

• Is the best move independently of other players

• Enables co-operation

• Requires to consider strategic interaction

The Prisoner’s Dilemma is characterized by

• A dominant equilibrium

• A disequilibrium

• An equilibrium in dominant strategies

• An efficient equilibrium

According to game theory, duopolists play

• An inefficient Nash equilibrium

• An efficient Nash equilibrium in dominant strategies

• A monopolistic cartel

• A disequilibrium

The production of an oligopoly is

• Lower than that of a monopoly

• Higher than that of a monopoly

• The same as a monopoly

• The same as a perfectly competitive market

From the standpoint of the firm, the oligopoly is

• Better than the monopoly but worse than the competitive market

• Better than the competitive market but worse than the monopoly

• Better than both monopoly and competitive market

• Worse than both monopoly and competitive market

The combined producer and consumer surplus of an oligopoly is

• Greater than that of a monopoly, but less than that of a competitive market

• Greater than that of a competitive market, but less than that of a monopoly

• Greater than both that of a competitive market and that of a monopoly

• Less than both that of a competitive market and that of a monopoly

Why is a cartel so difficult to uphold?

• Because members are forbidden to co-operate

• Because members do not know the production of others

• Because members want to decrease production

• Because members want to increase production

A public good is

• Excludable and rival

• Excludable and non-rival

• Non-excludable and rival

• Non-excludable and non-rival

A public good game

• Has no Nash equilibrium

• Has a mixed Nash equilibrium

• Has an efficient Nash equilibrium

• Has an inefficient Nash equilibrium

In the repeated public good game

• Contribution is always zero

• Contribution is always high

• Contribution tends to decrease

• Contribution tends to increase