1. In a two-person Nash equilibrium, each player is making a best response to what? In a dominant strategy equilibrium, each player is making a best response to what?
2. Look at the best responses for row and column in the section on mixed strategies. Do these give rise to best response functions?
3. If both players make the same choice in a coordination game, all will be well.
4. The text claims that row scores 62 percent of the time in equilibrium. Where does this number come from?
5. A contractor says that he intends to "low-ball the bid and make up for it on change orders." What does he mean?
1. Subjects are allowed to buy tickets in a lottery. One group is told that they have a 55 percent chance of winning, the other group is told that they have a 45 percent chance of not winning. Which group is more likely to buy lottery tickets? What is the name for this effect?
2. Mary plans the entire week's meals for her family, while Fred shops each day. Which is likely to produce more varied meals? What is this effect called?