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GAMES OF STRATEGY FINAL
QUESTIONS AND ANSWERS 2025
Acceptability Condition - correct answer- An upper bound on
the probability of fulfillment in a brinkmanship threat, expressed
as a function of the probability of error, showing the upper limit
of risk that the player making the treat is willing to tolerate.
Addition Rule - correct answer- If the occurrence of X requires
the occurrence of any one of several disjoint Y, Z,..., then the
probability of X is the sum of the separate probabilities of Y, Z,
...
Adverse Selection - correct answer- A form of information
asymmetry where a player's type (available strategies,
payoffs...) is his private information, not directly known to
others.
Agenda Paradox - correct answer- A voting situation where the
order in which alternatives are paired when voting in multiple
round determines the final outcome.
Agent - correct answer- The agent is the more-informed player
in a principal-agent game of asymmetric information. The
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principal (less-informed) player in such hames attempts to
design a mechanism that aligns the agent's incentives with his
own.
All-Play Auction - correct answer- An auction in which each
person who submits a bid must pay her highest bid amount at
the end of the auction, even if she does not win the auction.
Alternating Offers - correct answer- A sequential move
procedure of bargaining in which, if the offer made by one
player is refused by the other, then the refuser gets the next
turn to make an offer, and so on.
Amendment Procedure - correct answer- A procedure in which
any amended version of a proposal must win a vote against the
original version before the winning version is put to a vote
against the status quo.
Approval Voting - correct answer- A voting method in which
voters cast votes for all alternatives of which they approve.
Ascending Auction - correct answer- An open outcry auction in
which the actioneer accepts ascending bids during the course
of the auction; the highest bid wins. Also called English auction.
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Assurance Game - correct answer- A game where each player
has two strategies, say cooperate and not, such that the best
response of each is to cooperate if the other cooperates, not if
not, and the outcome from )cooperate, cooperate) is better for
both than the outcome of (not, not).
Asymmetric Information - correct answer- Information is said to
be asymmetric in a game if some aspects of it - rules about
what actions are permitted and the order of moves if any,
payoffs as functions of the players strategies, outcomes of
random choices by "nature," and of previous actions by the
actual players in the game - are known to some of the players
but are not common knowledge.
Babbling Equilibrium - correct answer- In a game where
communication among among players (which does not affect
their payoffs directly) is followed by their choices of actual
strategies, a babbling equilibrium is one where the strategies
are chosen ignoring the communication, and the
communication at the first stage can be arbitrary.
Backward Induction - correct answer- Same as rollback.
GAMES OF STRATEGY FINAL
QUESTIONS AND ANSWERS 2025
Acceptability Condition - correct answer- An upper bound on
the probability of fulfillment in a brinkmanship threat, expressed
as a function of the probability of error, showing the upper limit
of risk that the player making the treat is willing to tolerate.
Addition Rule - correct answer- If the occurrence of X requires
the occurrence of any one of several disjoint Y, Z,..., then the
probability of X is the sum of the separate probabilities of Y, Z,
...
Adverse Selection - correct answer- A form of information
asymmetry where a player's type (available strategies,
payoffs...) is his private information, not directly known to
others.
Agenda Paradox - correct answer- A voting situation where the
order in which alternatives are paired when voting in multiple
round determines the final outcome.
Agent - correct answer- The agent is the more-informed player
in a principal-agent game of asymmetric information. The
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principal (less-informed) player in such hames attempts to
design a mechanism that aligns the agent's incentives with his
own.
All-Play Auction - correct answer- An auction in which each
person who submits a bid must pay her highest bid amount at
the end of the auction, even if she does not win the auction.
Alternating Offers - correct answer- A sequential move
procedure of bargaining in which, if the offer made by one
player is refused by the other, then the refuser gets the next
turn to make an offer, and so on.
Amendment Procedure - correct answer- A procedure in which
any amended version of a proposal must win a vote against the
original version before the winning version is put to a vote
against the status quo.
Approval Voting - correct answer- A voting method in which
voters cast votes for all alternatives of which they approve.
Ascending Auction - correct answer- An open outcry auction in
which the actioneer accepts ascending bids during the course
of the auction; the highest bid wins. Also called English auction.
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Assurance Game - correct answer- A game where each player
has two strategies, say cooperate and not, such that the best
response of each is to cooperate if the other cooperates, not if
not, and the outcome from )cooperate, cooperate) is better for
both than the outcome of (not, not).
Asymmetric Information - correct answer- Information is said to
be asymmetric in a game if some aspects of it - rules about
what actions are permitted and the order of moves if any,
payoffs as functions of the players strategies, outcomes of
random choices by "nature," and of previous actions by the
actual players in the game - are known to some of the players
but are not common knowledge.
Babbling Equilibrium - correct answer- In a game where
communication among among players (which does not affect
their payoffs directly) is followed by their choices of actual
strategies, a babbling equilibrium is one where the strategies
are chosen ignoring the communication, and the
communication at the first stage can be arbitrary.
Backward Induction - correct answer- Same as rollback.
