5 Written Questions
5 Matching Questions
- Game Theory
- Tit-for-Tat Strategy
- Price Leadership
- Prisoners' Dilemma
- Concentration Ratio
- a A firm whose price decisions are tacitly accepted and followed by others in the industry.
- b A particular "game" between two captured prisoners that illustrates why cooperation is difficult to maintain even when it is mutually beneficial to do so.
- c The theory that studies decision making in situations in which one player anticipates the reactions of other players to its own actions. Firms are mutually interdendent.
- d A measure of market power - the percentage of all sales that is accounted for by the four or eight largest firms in the market
- e A pricing strategy in game theory in which firms continue to match each others' pricing strategy.
5 Multiple Choice Questions
- An oligopoly in which the sales of the leading (top four) firms are distributed unevenly among them.
- A combination of two or more companies into one company.
- A table that shows the payoffs that each firm earns from every combination of strategies by the firms.
- An agreement among firms in a market about quantities to produce or prices to charge in attempts to limit competition.
- The situation that exists when two or more groups need each other and must depend on each other to accomplish a goal that is important to each of them
5 True/False Questions
Price Discrimination → Offering specific goods or services at different prices to different segments of the market. Example: First class versus business class on airlines.
Nash Equilibrium → Any combination of strategies in which each players' strategy is his or her best choice, given the other players' strategies.
Cartel → A group of firms that collude to limit competition in a market by negotiating and accepting agreed-upon prices and market shares.
Joint Venture → The dominate firm in the oligopoly, whose pricing decisions are tacitly followed. The Godfather is the price leader.
Brand Multiplication → Offering specific goods or services at different prices to different segments of the market. Example: First class versus business class on airlines.