Magnificent Game Theory Test - 60+ MCQs: Game Theory Quiz: Test Your Strategic Thinking with Thought-Provoking Questions and Answers

1. What is the 'Repeated Prisoner's Dilemma' and how does it differ from the classic version?

A repeated version of the classic dilemma where players interact over multiple rounds

A term unrelated to Game Theory

A version where players are never faced with dilemmas

A version that ignores the concept of repetition

2. Explain the 'Folk Theorem' in Game Theory and its implications.

A set of theorems explaining repeated interactions and strategies in games

A term unrelated to Game Theory

A theorem about folklore and stories

A concept with no implications for strategic decision-making

3. What is the 'Stag Hunt' in Game Theory, and what does it illustrate?

A game involving hunting stags

A term unrelated to Game Theory

A metaphor for cooperation and conflict

A game where players only hunt rabbits

4. What is the 'Winner's Curse' in Auction Theory?

A situation where the winner is cursed with bad luck

A phenomenon where the winning bid exceeds the true value of the item

A curse that only affects auction winners

A term unrelated to auctions

5. What is 'Collusion' in the context of Game Theory?

A strategy involving collaboration between players

A term unrelated to Game Theory

A situation where players collide physically

A game played in collusion with others

6. What is the 'Hold-Up Problem' in Game Theory?

A situation where players hold up the game by refusing to play

A challenge in completing negotiations when one party has invested resources

A strategy involving holding up cards

A problem unrelated to strategic decision-making

7. Define 'Bargaining Problem' in Game Theory.

A challenge in negotiating game rules

A problem unrelated to Game Theory

A situation where players bargain over the division of a surplus

A strategy to solve bargaining issues

8. Explain 'Correlated Equilibrium' and its application in strategic interactions.

An equilibrium where players coordinate their strategies

A term unrelated to Game Theory

An equilibrium exclusive to non-cooperative games

A strategy focused on avoiding coordination

9. Define 'Perfect Bayesian Equilibrium' in Game Theory.

A state of perfect balance between players

A concept unrelated to Game Theory

A refinement of Nash Equilibrium considering off-equilibrium beliefs

A strategy involving perfect information

10. What is 'Perturbed Equilibrium' in the context of Game Theory?

An equilibrium with small perturbations to test stability

A term unrelated to Game Theory

A strategy involving drastic changes to equilibrium

An equilibrium unaffected by perturbations

Game Theory MCQ Test 5