Asked by Ken Xiao Xinhua on May 16, 2024
Verified
A simultaneous game is said to exist when:
A) firms are playing pricing games in different markets at the same time.
B) firms choose their strategies at the same time as their rivals.
C) firms can set multiple prices for the same good at the same time.
D) strategies are set without regard to possible interactions in future time periods.
Simultaneous Game
A scenario in strategic game theory where all players make their moves at the same time without knowing the moves of the other players.
- Articulate the essence of game theory and its implementation in oligopolistic market environments.
- Differentiate between simultaneous and sequential games within the framework of strategic behavior in firms.
Verified Answer
TW
Tameika WrightMay 17, 2024
Final Answer :
B
Explanation :
In a simultaneous game, firms choose their strategies at the same time as their rivals. This means that their decisions are made without knowledge of their competitors' actions or future outcomes. Therefore, they have to make their decisions based solely on their own assumptions and predictions.
Learning Objectives
- Articulate the essence of game theory and its implementation in oligopolistic market environments.
- Differentiate between simultaneous and sequential games within the framework of strategic behavior in firms.
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