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Questions › DSE › DSE 2010 › Q8
1 markGame Theory › Game theory and strategic behaviour › Extensive-form games and backward inductionModerateabout 3 min

DSE 2010 Question 8: Game theory and strategic behaviour

Consider two games. Game 1: the row player chooses Enter or Not enter and the column player's only option is Hawk, payoffs (row, column) Enter =(−1,1)=(-1,1)=(−1,1), Not enter =(0,6)=(0,6)=(0,6). Game 2 adds a Dove option for the column player: Enter === Hawk (−1,1)(-1,1)(−1,1), Dove (3,3)(3,3)(3,3); Not enter === Hawk (0,6)(0,6)(0,6), Dove (0,7)(0,7)(0,7). In every pair (x,y)(x,y)(x,y), xxx is the row-player's payoff and yyy the column-player's. These games illustrate that, in a strategic situation

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Consider two games. Game 1: the row player chooses Enter or Not enter and the column player's only option is Hawk, payoffs (row, column) Enter =(-1,1), Not enter =(0,6). Game 2 adds a Dove option for the column player: Enter = Hawk (-1,1), Dove (3,3); Not enter = Hawk (0,6), Dove (0,7). In every pair (x,y), x is the row-player's payoff and y the column-player's. These games illustrate that, in a strategic situation (A) an expanded set of strategic options can be disadvantageous (B) a contracted set of strategic options can be advantageous (C) one should view the situation from one's own, as well as from one's opponent's, perspective (D) all of the above are true

Game theory and strategic behaviour has come up 61 times in 6 exams since 2008.

What this question tests

This question is on Extensive-form games and backward induction, part of Game theory and strategic behaviour in Game Theory.

Games played in sequence, solved from the end back to the start.

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Question from the DSE 2010 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.