Applied game theory: competitions

How can Nash equilibrium be interpreted?

• No regret

• Self-enforcing agreement

• Viable recommendation

• Transparency of reason

Which of the following market models can be interpreted as simultaneous games?

• Cournot's

• Bertrand's

• Von Neumann's

• Stackelberg's

On what do players compete in a Cournot's model?

• Quality

• Price

• Quantity

• Technology

What is the outcome of Bertrand's competition?

• Prices get higher

• Pricey get lower and lower until MC=MR

• Prices don't change

• Price creates a surplus

What can be a result of a Stackelberg game?

• Follower competition

• Leader competition

• Second mover advantage

• First mover advantage

Why could a player choose to be the follower in a Stackelberg game?

• Due to information reveal

• Due to the first mover advantage

• Due to the second mover advantage

• Due to a more profitable Nash equilibrium

What can we safely remove in strategic form games?

• Strictly dominant strategies

• Strictly dominated strategies

• Weakly dominant strategies

• Weakly dominated strategies