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Review for Exam 1

Roman Sheremeta, Ph.D.

Professor, Weatherhead School of Management

Case Western Reserve University

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Chapters in the book�

  • Introduction to game theory (Chapter 1)
    • What is a game?
    • What is game theory?

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  • Normal-form games (Chapters 3 & 5)
    • What is a normal-form game?
    • How to write a game in a normal form?

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  • Dominated strategies (Chapters 6 & 7)
    • What is a dominant strategy?
    • What is a dominated strategy?
    • How to obtain the IEDS solution?

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Chapters in the book�

  • Nash Equilibrium and best response (Chapter 9)
    • What is a Nash equilibrium?
    • How to find Nash equilibrium using best response functions?
    • What is the relationship between Nash equilibrium and IEDS?

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  • Cournot models of duopoly and oligopoly (Chapter 10)
    • What is a normal-form representation of the Cournot model?
    • How to solve the Cournot model using best response functions?

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Chapters in the book�

  • Contests and tournaments (Slides)
    • What is a normal-form representation of a contest game?
    • How to solve a contest game using best response functions?

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  • Mixed strategy equilibrium (Chapters 4 & 11)
    • What is a mixed strategy Nash equilibrium?
    • How to find mixed strategy Nash equilibrium using best response functions?
    • Know how to apply Theorems 1 and 3 to check whether the strategy profile is a mixed strategy equilibrium?
    • Know how to apply Theorems 2 and 4 to find mixed strategy equilibrium?

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Thank you!

Roman Sheremeta, Ph.D.

Professor, Weatherhead School of Management

Case Western Reserve University

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