**Game Theory Glossary**| Number | Definition ||--------|------------|| 1 | A table that shows the payoffs each firm earns from every combination of firm strategies || 2 | An agreement among firms to charge the same price or otherwise not to compete || 3 | An option that is better than any alternative option regardless of what the other firm does || 4 | An outcome of a strategic game from which neither rival wants to deviate || 5 | A game outcome in which players seek to increase their mutual payoff || 6 | A practice where one firm initiates a price change and the other firms follow the leader || 7 | A game in which the firms choose their strategies at the same time || 8 | One firm’s gain must equal the other firm’s loss || 9 | A game in which the sum of the two firms’ outcomes is positive || 10 | Firms select their optimal strategies in a single time period without regard to possible interactions in subsequent time periods || 11 | A game that occurs more than once |**Instructions:** Enter a numeric response corresponding to the number of the definition listed above.a. Collusion: [ ]b. Zero-sum game: [ ]c. Price leadership: [ ]d. Positive-sum game: [ ]e. Payoff matrix: [ ]

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Number Definition A table that shows the payoffs each firm earns from every combination of firm strategies An agreement among firms to charge the same price or otherwise not to compete An option that is better than any alternative option regardless of what the other firm does An outcome of a strategic game from which neither rival wants to deviate A game outcome in which players seek to increase their mutual payoff A practice where one firm initiates a price change and the other firms follow the leader A game in which the firms choose their strategies at the same time One firm's gain must equal the other firm's loss A game in which the sum of the two firms' outcomes is positive Firms select their optimal strategies in a single time period without regard to possible interactions in subsequent time periods 1 4 6. 7 8 9. 10 11 A game that occurs more than once Instructions: Enter a numeric response corresponding to the number of the definition listed above. a. Collusion: b. Zero-sum game: c. Price léadership: d. Positive-sum game: Ravoff matrix:

Number Definition A table that shows the payoffs each firm earns from every combination of firm strategies An agreement among firms to charge the same price or otherwise not to compete An option that is better than any alternative option regardless of what the other firm does An outcome of a strategic game from which neither rival wants to deviate A game outcome in which players seek to increase their mutual payoff A practice where one firm initiates a price change and the other firms follow the leader A game in which the firms choose their strategies at the same time One firm's gain must equal the other firm's loss A game in which the sum of the two firms' outcomes is positive Firms select their optimal strategies in a single time period without regard to possible interactions in subsequent time periods 1 4 6. 7 8 9. 10 11 A game that occurs more than once Instructions: Enter a numeric response corresponding to the number of the definition listed above. a. Collusion: b. Zero-sum game: c. Price léadership: d. Positive-sum game: Ravoff matrix:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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