G4: Game Theory

What is Game Theory?

• The study of video games

• The study of mathematical models of strategic interaction among rational decision-makers

• The theory of probability in games

• The study of game development processes

What do we call a situation in Game Theory where each player's optimal choice depends on the choices of others?

• A) Isolated play

• B) Dominant strategy

• C) Nash Equilibrium

• D) Solo game

In the Prisoner's Dilemma game, if both prisoners choose to betray each other, what is the outcome?

• They both go free

• They both serve a moderate sentence

• They both serve the longest sentence

• They both get a reduced sentence

What is a zero-sum game?

• A game where everyone wins

• A game where the sum of gains and losses of all players is zero

• A game with no strategic interactions

• A game with zero players

Which of the following is NOT a component of a game in Game Theory?

• Players

• Payoffs

• Prayer

• Strategies

In Game Theory, what does a "Dominant Strategy" refer to?

• A strategy that always results in a win

• A strategy that is preferred by all players

• A strategy that yields the highest payoff regardless of what other players choose

• A strategy that is dominant in popular games

What is a 'strategy' in Game Theory?

• A plan to earn money

• A choice made by a player at any point in a game

• A rule enforced by the game administrator

• The final outcome of a game

Which concept in Game Theory involves one player benefiting at another’s expense?

• Cooperation

• Zero-sum game

• Nash Equilibrium

• Mixed strategy

What is meant by 'payoff' in Game Theory?

• The cost of entering the game

• The reward or penalty received as a result of the choices made

• The process of paying to play the game

• The setup cost of the game

What does the 'Prisoner’s Dilemma' typically illustrate?

• The benefits of solitary confinement

• The challenges of escaping from prison

• The difficulty of achieving cooperation under uncertainty

• The rules of engagement in combat