Please indicate explanations for all answers. 2. Game theory terminology Select
ID: 1113258 • Letter: P
Question
Please indicate explanations for all answers.
2. Game theory terminology Select the term that best describes each definition listed in the following table Tit-for- tat Prisoners Payoff Dilemma Nash Equilibrium Strategy Collusion Strategy MatrixGame Dominant Definition A set of strategies (one for each player) in which each player's strategy is the best option for that player, given the chosen strategy of the player's opponents The event that occurs when agents in a game form an agreement about which strategies to implement A case in which individually rational behavior leads to a jointly inefficient outcome A player's best choice, if it exists, regardless of his or her opponent's strategyExplanation / Answer
Answer is Nash equilibrium because Nash equilibrium is mutual best response. Answer is collusion, because under collusion firms collude while choosing the strategic variable Answer is prisoner dilemma, because both chooses fink which is jointly inefficient because if they have opted to mum then payoff would have been higher. Answer is dominant because it is the strategy if exists that a player chooses no matter what other individual