Select the correct statement about the trust game in our lecture. Group of answer choicesThe SPE of the game does not capture "trust" between two players since x=0 in the SPE. However, our experiment suggests people tend to trust the other player in average. The game captures "trust" since x=100 in the SPE. This result is also supported by our experiment. Since x=0 in the SPE, player 1 cannot get a higher payoff regardless of player 2's choice of y. In our experiment, it was more profitable to play x=0 rather than x=100 in average if you are randomly matched with one of your classmates.

Consider the following game represented in normal form. Terry and Kerry are roommates who must make decisions about cleaning. Terry’s payoff is the first number in each cell and a higher number is a better outcome. Assume that Terry makes his decision first, if so what is the Nash Equilibrium of this game:   Kerry  CleanDon’t cleanTerryClean( 8, 2 )( 3, 5 )Don’t clean( 10, 3 )( 4, 1 )Group of answer choicesTerry will clean and Kerry will not clean.Terry will not clean and Kerry will not clean.Terry will not clean and Kerry will clean.Terry will clean and Kerry will clean.More information is required to answer this question.

Consider the following two-player game with three actions for each player. Choose the correct statement.1 pointFor Player 1, strategy C is the best action regardless of Player 2’s action. In strategy combination (A, X), Player 2 has an incentive to deviate. In strategy combination (C, X), no one has an incentive to deviate. In every strategy combination, someone has an incentive to deviate.

There are 8 players. Each player chooses one of the numbers 2, 3, 4, 5, 6, 7, 8, 9 or 10. The player or players whose number(s) is (are) closest to twice of the average of all numbers chosen wins. The payoff of each player is 1 if she wins (regardless of whether or not there are other winners), and 0 if she loses.What is true in this guessing game? None of the other alternatives is true. For each player, choosing the number 2 is the only strategy that survives iterated elimination of strongly dominated strategies. For each player, choosing the number 10 is the strongly dominant strategy. No player has a strongly dominant strategy. For each player, choosing the number 10 is the only strategy that survives iterated elimination of strongly dominated strategies. Every player has a strongly dominated strategy.

33. Which game theory concept involves two players each choosing to cooperate or betray the other, often used to model situations of trust and betrayal?Group of answer choicesUltimatum GameChicken GamePrisoner's DilemmaPaper-Rock-Scissors Game

Two players, A and B.A goes first. They roll a dice that has random outputs between 1 and 30. The player who gets the higher number wins, and the loser pays the winner the amount that the winner gets on his dice.1. What is the expected winnings?2. Would you prefer being Player A or Player B? Why?