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Theory of Games and Economic Behavior by John Von Neumann - Quiz
  • 1. Which of the following is a type of game that has a clear conflict of interest?
A) Public goods game.
B) Evolutionary game.
C) Cooperative game.
D) Zero-sum game.
  • 2. Who are the authors of the book 'Theory of Games and Economic Behavior'?
A) John Nash and Roger Myerson.
B) John Von Neumann and Oskar Morgenstern.
C) Kenneth Arrow and George Stigler.
D) Daniel Kahneman and Amos Tversky.
  • 3. In cooperative games, what is the core?
A) A stable outcome without any external enforcement.
B) The basic strategy that guarantees a win.
C) An allocation accepted by all players without negotiation.
D) The set of feasible allocations that cannot be improved upon by any coalition.
  • 4. What does ‘best response’ mean in game theory?
A) The strategy that ensures a win every time.
B) Any strategy that players prefer.
C) The most conservative choice.
D) The strategy that yields the highest payoff given the other players' strategies.
  • 5. What is a 'Pareto efficient' outcome?
A) An outcome where players always get equal benefits.
B) An allocation where no player can be made better off without making another player worse off.
C) A game that always ends in a tie.
D) An optimal outcome only for one player.
  • 6. Who introduced the concept of game theory in economics?
A) John Von Neumann.
B) David Ricardo.
C) Milton Friedman.
D) Adam Smith.
  • 7. What does 'subgame perfect equilibrium' refer to?
A) An equilibrium where players' strategies are optimal in every subgame.
B) An outcome determined by chance.
C) A situation where players cannot change their strategies.
D) An equilibrium that exists only in finite games.
  • 8. What is a strictly dominated strategy?
A) A strategy that is worse than another strategy for every possible action of the other players.
B) A strategy that is better in some cases and worse in others.
C) A strategy that is randomly chosen.
D) A strategy that cannot be improved upon.
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