What is the solution to a simultaneous-move game when both sides do not have dominant strategies?
What will be an ideal response?
If just one player has a dominant strategy, the other player knows that the dominant strategy will be chosen and can plan accordingly. When looking for a quick solution players should check for a dominant strategy themselves first and lacking one, should then check for a dominant strategy for their opponents.
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Over a month in late 2008, the Federal Reserve Bank reduced the interest rate by 1 percentage point
Given that the United States operates under a ________ exchange rate regimes, the primary purpose of these changes was ________ exchange rate of each currency. A) flexible; not designed to influence B) flexible; designed to influence C) fixed; designed to influence D) fixed; not designed to influence
The degree of control over its output price that any seller has is limited by
a. the existence of actual competition in the market. b. the existence of potential competition from producers who might try to enter the market. c. the elasticity of the demand for the product. d. All of these.
When the Fed changes money supply by selling government securities, the interest rate will
A) fall unless the LM curve is horizontal. B) fall unless the IS curve is vertical. C) rise if the LM curve is vertical or upward sloping. D) remain constant if the LM curve is vertical.
The federal government increases spending by $50 billion and the main effect is an increase in the price level. It must be true that the economy is operating on the
a. horizontal portion of the aggregate demand curve. b. horizontal portion of the aggregate supply curve. c. vertical portion of the aggregate supply curve. d. vertical portion of the aggregate demand curve.