Section 1: Be able to match each of these terms with its definition for the exam.
Game theory
Rational behavior
Vicarious thinking
Prisoner’s dilemma
Matrix
Payoff
Simultaneous move game
Sequential game
Repeated game
The shadow of the future
Strictly dominant strategy
Strictly dominated strategy
Ordinal system
Cardinal system
Nash equilibrium
Pareto efficiency
Stable outcome
Unstable outcome
Prisoner’s dilemma
Chicken game
Stag hunt
Promise
Threat
Credible threat
Commitment
Warning
Brinksmanship
Deterrence
Arms race
Mutually assured destruction
War’s inefficiency puzzle
War’s bargaining range
Asymmetric information
Preventive war
Asymmetric information
Lemons problem
Issue indivisibility
Incentives to misrepresent
Proliferation
Section 2: In Section 2 you will have to be able to recognize and define different game theory strategies and be able to apply them to specific situations.
Section 3: In Section 3 you will have to respond to one of the following prompts, 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.
Did the United States and the Soviet Union behave rationally during the Cold War?
Identify three ways that the United States and Israel could stop Iran from obtaining a nuclear weapon and then explain which is the best option.