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Identify the definition for each term listed below from the following list. 1. T

ID: 1156019 • Letter: I

Question

Identify the definition for each term listed below from the following list. 1. The study of how people make decisions where attaining goals depends on interactions with others. 2. A table that shows the payoffs each firm earns from every combination of firm strategies. 3. An agreement among firms to charge the same price or otherwise not to compete 4. A strategy that is the best for a firm, no matter what strategies other firms use 5. A situation in which each firm chooses the best strategy, given the strategies chosen by other firms. 6. A game outcome in which players seek to increase their mutual payoff 7. A situation where one firm announces a price change, which is matched by other firms in the industry. 8. A game in which the firms choose their strategies at the same time 9. One firm's gain must equal the other firm's loss. 10. A game in which the sum of the two firms' outcomes is positive 11. The firms select their optimal strategies in a single time period without regard to possible interactions in subsequent time periods 12. A game that recurs more than once Instructions: Enter a numeric response corresponding to a definition listed above using an integer. a. Payoff matrix: b. A repeated game C. Game theory. d. Zero-sum game e. Dominant strategy:

Explanation / Answer

The definitions are as follows:

a) Payoff matrix - 2 - A table that shows the payoffs each firm earns from every combination of firm strategies.

b) A repeated game - 12 - A game that recurs more than once.

c) Game theory - 1 - The study of how people make decisions where attaining goals depends on interaction with others.

d) Zero-sum game - 9 - One firm's gain must equal the other firm's loss.

e) Dominant strategy - 4 - A strategy that is best for the firm, no matter what strategies other firms use.