DEFINITIONS AND FACTS Mark all of the following statements that are correct. Select one or more: One outcome Pareto dominates another if it is weakly preferred by all players and strictly preferred by none. A mixed strategy for an agent is a probability distribution over his or her best-response payoffs. A two-player game is win/lose if the only possible payoff profiles are (1,-1) and (-1, 1). A first-order condition for optimality states that the partial derivative of the agent's best-response function with respect to his or her choice variable, evaluated at zero, equals one. A strategy profile is a Nash equilibrium if each player's payoff weakly dominates his or her opponents' payoffs. Allowing for mixed strategies, any finite game possesses at least one Nash equilibrium.
DEFINITIONS AND FACTS Mark all of the following statements that are correct. Select one or more: One outcome Pareto dominates another if it is weakly preferred by all players and strictly preferred by none. A mixed strategy for an agent is a probability distribution over his or her best-response payoffs. A two-player game is win/lose if the only possible payoff profiles are (1,-1) and (-1, 1). A first-order condition for optimality states that the partial derivative of the agent's best-response function with respect to his or her choice variable, evaluated at zero, equals one. A strategy profile is a Nash equilibrium if each player's payoff weakly dominates his or her opponents' payoffs. Allowing for mixed strategies, any finite game possesses at least one Nash equilibrium.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:DEFINITIONS AND FACTS
Mark all of the following statements that are correct.
Select one or more:
One outcome Pareto dominates another if it is weakly preferred by all players and strictly preferred by none.
A mixed strategy for an agent is a probability distribution over his or her best-response payoffs.
A two-player game is win/lose if the only possible payoff profiles are (1,-1) and (-1, 1).
A first-order condition for optimality states that the partial derivative of the agent's best-response function with respect to his or her choice variable,
evaluated at zero, equals one.
A strategy profile is a Nash equilibrium if each player's payoff weakly dominates his or her opponents' payoffs.
Allowing for mixed strategies, any finite game possesses at least one Nash equilibrium.
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