If mixed strategies are allowed in the Copycat Game, a Nash equilibrium will result if
a. both players randomly choose their strategies by flipping a fair coin.
b. one player randomly chooses his strategy by flipping a fair coin, while the other player uses a pure strategy.
c. one player randomly chooses his strategy by flipping an unfair coin, while the other player uses a pure strategy.
d. both players stick to using pure strategies.
a. both players randomly choose their strategies by flipping a fair coin.
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Which of the following are NOT included among Gordon's criticisms of Friedman's fooling model?
A) Workers buy many goods on a weekly basis and thus could discover quite quickly that prices had risen. B) Workers could discover movements in the aggregate price level fairly easily. C) The model relied on a non-market-clearing explanation of the labor market. D) Workers would predict higher prices if policies that led to higher prices in the past were used again.
The authors explain that a firm earning a zero economic profit in the long run has earned a competitive return on their investment. What do they mean by "competitive" return in this context?
A) The firm's return could only be earned under perfect competition and would be smaller under imperfect competition. B) The firm's return is at least as larger as the returns earned by other firms. C) The firm's return is at least as larger as could be earned in another investment. D) The firm's return is negative, which initiates stronger competition among firms in the market.
If a country grows at an average rate of 5 % per year over a 5 year period, then its compounded growth rate over that period is roughly:
A. 27.6 %. B. 35.0 %. C. 32.7 %. D. 20.5 %.
As an investor, would you agree to the statement "put all your eggs in one basket?" Substantiate your answer