__Game
Theory: Self Assessment Questions__

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*

**1.
What is a dominant strategy?**

**Write
an answer in the box below and press submit. Take care with your spelling.
**

**2.
A Nash Equilibrium occurs where a player maximises their payoff given what
they anticipate their opponent is doing
**

**3a. Does
Player 1 have a dominant strategy?**

**3c.
What is the Nash Equilibrium? ****Please
put your entry into the text box below using the following example - (top,
left)**

**4.
Consider the following 3-person game in which player 1 chooses the row, player
2 chooses the column and player 3 the matrix that will be played. The first
number in each cell is the payoff to player 1, the second number is the payoff
to player 2, and the third number the payoff to player 3. **

**5.
In the following normal form game what is the Nash Equilibrium?**

**6.
What is the Nash Equilibrium in the following game between Kuwait and Saudi
Arabia? The payoffs are net profits to each from producing millions of barrels
of oil per day. If 5 million barrels per day are produced then the profit
margins are £16 per barrel. If 6 million barrels per day are produced
then the profit margins are £12 per barrel and they are £8 per
barrel if 7million barrels per day are supplied.**

**8.
The game set out below shows the final stage of a ten period game between
two firms. Profits/losses (in £millions per year) are depicted in
the payoff matrix.**

**According
to the logic of backward induction what should be the equilibrium of the
game?
**

©Kevin
Hinde 1999 - 2004