242s02x3 - ECONOMICS 242 FINAL EXAM SPRING 2002 PLEDGE:_...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
ECONOMICS 242 FINAL EXAM SPRING 2002 PLEDGE:____________________________ NAME:______________________________ Multiple Choice Questions: 3 points each (42 points total) 1. The following game has _____ pure strategy Nash equilibria. Player 2 Rock Paper Scissors Rock T, T L, W W, L Player 1 Paper W, L T, T L, W Scissors L, W W, L T, T a. one. b. two. c. three. d. no. 2. The game in question one has a mixed strategy Nash equilibrium of a. playing Rock, Paper, and Scissors one-third of the time each. b. playing Rock if the other player plays scissors, playing Paper if the other player plays Rock, and playing scissors if the other player plays paper. c. Always playing Rock. d. Does not have a mixed strategy Nash equilibrium. 3. Suppose that by winning an auction for a broad-band spectrum, you were guaranteed of making a $1 million profit every year till the end of time. The present value of that profit, if the interest rate is 20%, is: a. infinite. b. $50 million. c. $10 million. d. $5 million. e. $2 million. 4. A private-value auction is an auction where: a. Each bidder places different values on the item. b. The values that each bidder places on the item is known to all other bidders. c. The winning bidder pays the bid of the second highest bidder. d. None of the above.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
5. A noncooperative game, a. Is one in which an equilibrium can never be reached where both players achieve their highest payoffs. b. Is one in which joint-action agreements are enforceable. c. Is one in which players are allowed to act in their own interests. d. None of the above. 6. In the following game, the Nash equilibrium is:
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

242s02x3 - ECONOMICS 242 FINAL EXAM SPRING 2002 PLEDGE:_...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online