Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
game theory strategic decision simultaneous game repeated games sequential game player strategy payoff optimal strategy dominant strategy dominated strategy payoff matrix normal form pure strategy mixed strategy maximin strategy backward induction grim trigger strategy or grim reaper strategy tit- sequential games extensive form or decision tree strategic move side payment noncredible threat credible commitment | A choice or a restriction of choices that guarantees a player will take a particular future action if certain conditions occur. Representation of a sequential game that shows both the choice and timing of players’ actions. A strategy in which the player minimizes her exposure to loss. A strategy in which the player randomizes her actions. A type of bribe that influences the outcome of a strategic game. An action made based on the anticipation of others’ actions. The outcome a player receives from playing the game. The common organization of an economic game into its players, strategies, and the payoffs in a payoff matrix. The action that has the highest expected payoff. The plan of action that a player takes in an economic game. A threat made in a game that is not rational for the player to follow through on and, as such, is an empty threat. The study of strategic interactions among two or more economic actors. A losing strategy for a player, regardless of her opponents’ strategies. An action taken early in a game that favorably influences the ultimate outcome of the game. A series of simultaneous games among the same set of economic actors. Games where one player moves first and other players observe this action before making their decisions. The process of solving a multistep game by first solving the last step and then working backward. A table that lists the players, strategies, and payoffs of an economic game. A game in which players take consecutive turns. A strategy in which the player chooses a particular action with certainty. A participant in an economic game who must decide on actions based on the actions of others. A strategy in which the player mimics her opponent’s prior- A winning strategy for a player, regardless of her opponents’ strategies. A strategy in which cooperative play ends permanently when one player cheats. A game in which participants choose their actions simultaneously without knowing their opponents’ strategies. |