Chapter 9 - Games & strategic behavior

________: coalition of firms that agree to restrict output for the purpose of earning an economic profit.

Decision tree= game tree: diagram that describes the ________ in a game in sequence and lists the payoffs that correspond to each possible combination of moves.

table that describes the payoffs in a game for each possible combination of strategies

one that a yields a higher payoff no matter what the other players in a game choose

any other strategy available to a player who has a dominant a strategy

any combination of strategy choices in which each player's choice is his/her best choice, given the other players' choices

game in which each player has a dominant strategy, and when each plays it, the resulting payoffs are smaller than if each had played a dominated strategy

coalition of firms that agree to restrict output for the purpose of earning an economic profit

standard prisoner's dilemma that confronts the same players repeatedly

strategy for the repeated prisoner's dilemma in which players cooperate on the first move, then mimic their partner's last move on each successive move

diagram that describes the possible moves in a game in sequence and lists the payoffs that correspond to each possible combination of moves

threat to take an action that is in the threatener's interest to carry out

promise to take an action that is in the promiser's interest to keep

situation in which people cannot achieve their goals because of an inability to make credible threats or promises

way of changing incentives so as to make otherwise empty threats or promises credible

Basic elements of a game

Table that describes the payoffs in a game for each possible combination of strategies

One that a yields a higher payoff no matter what the other players in a game choose

Any other strategy available to a player who has a dominant a strategy

Any combination of strategy choices in which each player's choice is his/her best choice, given the other players' choices

Game in which each player has a dominant strategy, and when each plays it, the resulting payoffs are smaller than if each had played a dominated strategy

Coalition of firms that agree to restrict output for the purpose of earning an economic profit

Standard prisoner's dilemma that confronts the same players repeatedly

Strategy for the repeated prisoner's dilemma in which players cooperate on the first move, then mimic their partner's last move on each successive move

Diagram that describes the possible moves in a game in sequence and lists the payoffs that correspond to each possible combination of moves

Threat to take an action that is in the threatener's interest to carry out

Promise to take an action that is in the promiser's interest to keep

Situation in which people cannot achieve their goals because of an inability to make credible threats or promises

Way of changing incentives so as to make otherwise empty threats or promises credible