MATH - MAT GAM_02: Module 6 Test. Questions and Answers.

MATH - MAT GAM_02: Module 6 Test. Questions and Answers. Question 1 Two Firms A and B are playing the following game as shown The numbers are the payoffs for Firm A and B respectively. Identify the payoffs to A and B at SPE Select the correct option. Select one: a. (1,2) b. (2,1) c. (2,-1) Correct d. (1,-3) Question 2 Two Firms A and B are playing the following game where A is deciding whether to enter B's market. The numbers are the payoffs for Firm A and B respectively. If B chooses to Fight, Firm A should choose Select the correct option. Select one: a. Fight b. Don’t Fight c. Exit Correct d. Don’t Enter Question 3 Two players Bob and Alice are playing the following game The numbers in the cells are the respective payoffs to the players as per convention If Bob chooses 'Fight' with probability 'p' and Alice chooses 'Fight' with probability 'q', for x=y=10, the mixed strategy equilibrium is Select the correct option. Select one: a. ( p=1/2, q=1/2) b. (p=1/3, q=1/3) c. No mixed strategy equilibrium Correct d. (p=2/3, q=2/3) Question 4 A sequential game is shown below: At equilibrium, choose the correct option from the following Select the correct option. Select one: a. Firm A chooses “Don’t Invest” and B chooses “accommodates” b. Firm A chooses “Invest” and B chooses “Fight” c. The equilibrium payoffs are (2,1) Correct d. This game has no SPE Question 5 A sequential game is shown below: Identify the SPE of the game Select the correct option. Select one: a. ((X,X,M) Correct b. ((Y,Y),L) c. ((Y,Y),M) d. ((Y,X),M)