Sequential games. In game theory, a sequential game is a
game where one player chooses their action before the others choose theirs
. Importantly, the later players must have some information of the first’s choice, otherwise the difference in time would have no strategic effect.
How are decision trees used to analyze sequential games quizlet?
how are decision trees used to analyze sequential games? a decision tree
contains decision nodes where firms must make decision, arrows illustrating the decisions, and terminal nodes showing the resulting rates of return
.
What is the strategy in which the player mimics her opponent’s prior period action in each round?
(2)
Tit-for-Tat
: a strategy in which the player mimics her opponent’s prior-period action in each round; for example, the player cheats when her opponent cheated in the preceding round, and cooperates when her opponent cooperated in the previous round.
Are decision trees only used to analyze sequential games?
28) Decision trees can only be used to
analyze sequential games
. 29) Because many business situations are repeated games, firms may be able to avoid the prisoner’s dilemma and implicitly collude to keep prices high.
What is the optimal strategy for Burger King?
Burger King uses two generic strategies for competitive advantage:
cost leadership and broad differentiation
. The company’s primary generic competitive strategy is cost leadership. According to Michael Porter’s model, this generic strategy involves minimizing costs, which leads to low prices.
How are games in game theory played quizlet?
How are games in game theory played? In game theory, A.
players determine their objectives and then payoffs are randomly assigned
.
In which game do both players win money in equilibrium?
Example of
Nash Equilibrium
In this simple game, both players can choose strategy A, to receive $1, or strategy B, to lose $1. Logically, both players choose strategy A and receive a payoff of $1.
How is an extensive form game different from a simultaneous move game?
result in a dominant strategy equilibrium. specify the order of play. How is an extensive-form game different from a simultaneous move game?
Moves are made simultaneously in an extensive-form game and sequentially in a simultaneous move game
.
What does it mean to say that a game is in extensive form?
The game is written out as often as the
situation call for it to be played
E. strategies are described, rather than just numbered.
How do barriers to entry affect the extent of competition or lack thereof in an industry?
What do barriers to entry have to do with the extent of competition, or lack thereof, in an industry? Without barriers to entry,
new firms will enter industries where firms are earning economic profits
. economies of scale, ownership of a key input, and government imposed barriers.
What is McDonald’s strategy?
McDonald’s new holistic strategy, called
Accelerating the Arches
, is focused on not just the company’s food but how consumers will order it, with an emphasis on drive-thru, delivery, and digital (the “three Ds” in McDonald’s parlance).
Whats Better Burger King or Mcdonalds?
McDonald’s and Burger King
are the biggest rivals in fast food. Burger King has been aggressively trolling the larger chain in recent years. … While I was impressed by neither, Burger King won out with its better fries and more balanced burger.
What is Burger King marketing strategy?
Burger King uses market-oriented pricing strategy as its primary approach to pricing. This pricing strategy involves
setting prices based on prevailing market conditions
, including supply and demand conditions as well as the pricing of competing firms.
What is a game in game theory?
Game:
Any set of circumstances that has a result dependent on the actions of two or more decision-makers
(players) Players: A strategic decision-maker within the context of the game.
What is game theory the study of?
Game theory is the process of modeling the strategic interaction between two or more players in a situation containing set rules and outcomes. While used in a number of disciplines, game theory is most notably used as a tool within the
study of economics
.
What is microeconomics game theory?
Game theory is
an analytical approach through which strategic choices can be assessed
. … Once a firm implements a strategic decision, there will be an outcome. The outcome of a strategic decision is called a payoff. In general, the payoff in an oligopoly game is the change in economic profit to each firm.
