Name: ________________________
ECO 4400 Games and Decisions: Midterm 1
You will have 75 minutes to complete this exam.
Please allocate your time accordingly
and show your work where appropriate.
“Rational”, when used in this exam, means the
same as it did when he used it in class.
There are 100 points possible.
True or False:
Circle your answer.
No explanation needed. 2 points each.
1.
True or False:
A player must make the same decision at every node inside an
information set.
2.
True or False:
If all players are rational, then the outcome of a game will be a
Nash equilibrium.
3.
True or False:
A strictly dominated strategy can never be part of a Nash
equilibrium.
4.
True or False:
If a strategy profile survives the iterated deletion of strictly
dominated strategies, then it must be a Nash equilibrium.
5.
True or False:
In a twoplayer normal form game, if Player 2 is randomizing
among strategies, then if Player 1 is rational, he should also randomize among
strategies.
6.
True or False:
In an extensive form game with imperfect information, for each
terminal node, there is exactly one path from the initial node which ends at that
terminal node.
7.
True or False:
Assuming both players are rational, preplay communication
cannot have an effect on the outcome of a prisoner’s dilemma game.
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 Fall '10
 Lightle
 Game Theory, Bob 10x

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