Section 1: Be able to match each of these terms with its definition for the exam.
Game theory
Rational behavior
Vicarious thinking
Player
Payoff matrix
Payoff
Simultaneous game
Sequential game
Repeated game
The shadow of the future
Strictly dominant strategy
Strictly dominated strategy
Ordinal payoffs
Cardinal payoffs
Pure strategy Nash equilibrium
Pareto efficiency
Stable outcome
Unstable outcome
Prisoner’s dilemma
Chicken game
Promise
Threat
Credible threat
Zero sum game
Mixed strategy Nash equilibrium
Stag hunt
Matching Pennies
Battle of the sexes
Section 2: In Section 2 you will be presented with some strategic problems/dilemmas. You will have to explain which of the games we have learned the problem exemplifies. You may have to construct your own payoff matrix or you may be given the payoff matrix for each problem. Then you will need to identify how the game will end (the outcome) and why it will end that way.
Section 3: In Section 3 you will have to respond to the following question, using game theory and real world evidence in your response. You may prepare one notecard of evidence to use on this part of the test. I will use this rubric to assess your essay.
Do we behave rationally?
You may bring in one notecard to help you with this section.
On the day of the test you will write a five-paragraph essay, responding to the question above using real world events (using at least one of the games that we have learned) and fictional examples from film or literature. In doing so you should explain how your examples fit the characteristics of games we have learned in class.
The best paragraphs will define and explain some or all of the games that we have studied using payoff matrices and appropriate game theory vocabulary.
The best paragraphs will include evidence (such as quotes from credible sources) from the real world and fiction in support of the thesis.
The best paragraphs will also cite the sources from which evidence was obtained.