Question

Give brief definitions of the following concepts: Game theory, cooperative equilibrium, noneooperative equilibrium, dominant strategy, and Nash equilibrium, and price leadership. To do this, identify the definition for each term from the following list.

1 Actions taken by a firm to achieve a goal, such as maximizing profits.
2 The study of how people make decisions where attaining goals depends on interactions with others.
3 A table that shows the payoffs each firm earns from every combination of firm strategies.
4 An agreement among firms to charge the same price or otherwise not to compete.
5 A strategy that is the best for a firm, no matter what strategies other firms use.
6. A situation in which each firm chooses the best strategy given the strategies chosen by other firms.
7. A game outcome in which players seek to increase their mutual payoff.
8. A game outcome in which players pursue their own self-interest.
9. A situation in which no player can make himself better off by changing his decision at any decision node.
10. A situation where one firm announces a price change, which is matched by other firms in the industry.
a. Game theory:______
b. Cooperative equilibrium:_______
c. Noncooperative equilibrium:_______
d. Dominant strategy:______
e. Nash equilibrium:______
f. Price leadership:_________

Answer 1

Step-by-step explanation:

Give brief definitions of the following​ concepts: Game​ theory, cooperative​ equilibrium, noncooperative​ equilibrium, dominant​ strategy, and Nash​ equilibrium, and price leadership.

To do​ this, identify the definition for each term from the following list.

1 Actions taken by a firm to achieve a​ goal, such as maximizing profits.

2 The study of how people make decisions where attaining goals depends on interactions with others. Game theory

3 A table that shows the payoffs each firm earns from every combination of firm strategies.

4 An agreement among firms to charge the same price or otherwise not to compete.

5 A strategy that is the best for a​ firm, no matter what strategies other firms use. Doninant strategy

6. A situation in which each firm chooses the best​ strategy, given the strategies chosen by other firms. Nash equilibrum

7. A game outcome in which players seek to increase their mutual payoff. Cooperative equilibrum

8. A game outcome in which players pursue their own​ self-interest. Non cooperative equilibrum

9. A situation in which no player can make himself better off by changing his decision at any decision node.

10. A situation where one firm announces a price​ change, which is matched by other firms in the industry. Price leadership