Module 4 Game Theory

1) Game theory is a way to consider the
impact of games on business.

2) Game theory has been used to plan
warfare strategies.

3) Game theory is not very useful during
Union negotiations.

4) The cornerstone of game theory is
Harsanui equilibrium and Harsanui bargaining problems.

5) Game models are classified by the
number of players, the maximum payoffs, and the likelihood of each outcome.

6) In a zero-sum game, what one player
gains is lost by the other.

7) In a competitive business market, one
company’s strategy might be to minimize its potential losses.

8) In a competitive business market, one
company’s strategy might be to maximize its minimum profits.

9) The minimax criterion is equivalent to
maximizing one’s minimum gains.

10) Minimizing one’s maximum losses is identical
to maximizing one’s minimum gains.

11) The upper value of the game is
selected as the minimum of the maximum numbers in a column.
12) The lower value of the game is
selected as the maximum of the minimum numbers in a row.
13) If the upper value of the game is
larger than the lower value of the game, a saddle point condition exists.
14) The value of a two-person pure
strategy game is equal to the lower value of the game.
15) When there is no saddle point, the
game is a mixed strategy game.