Problem 1
Say whether each of the following is a rule, a strategy, or a payoff. [LO 9.1\(]\) a. In chess, when you capture your opponent's king, you win the game. b. In Monopoly, players frequently mortgage their existing properties to raise cash to buy new ones. c. In chess, the rook piece can move any number of spaces directly forward, backward, or to either side, but it cannot move diagonally. d. In rock-paper-scissors, you might always play rock.
Problem 2
Sharon is going to an auction. Say whether each of the following is a rule, a strategy, or a payoff. \([\mathrm{LO} 9.1]\) a. Bids must increase in increments of \(\$ 20\). b. The highest bid wins the item being auctioned. c. Sharon waits until the bidding is just about to close before she enters a bid. d. The money raised from the auction goes to charity.
Problem 5
In which of the following situations, \(a\) or \(b\), is a tit-for-tat strategy more likely to be successful at maintaining cooperation? [LO 9.3] a. An agreement of mutual support between players on a reality television show, in which the relatively worst-off player is eliminated every episode. b. A peace treaty between neighboring countries.
Problem 6
Which of the following are examples of tit-for-tat strategies? [LO 9.3\(]\) a. A friend forgets to send you a birthday card this year, so you decide not to send one to her on her next birthday. b. Your friend let you borrow her class notes last week, so you decide to skip class again this week C. You and your roommate take turns buying toilet paper, milk, and other shared items. d. Your book club chooses a book you don't want to read, so you decide to not to go this month.
Problem 12
Which of the following are examples of first-mover advantage? [LO 9.6] a. You make an offer on a house. The seller can only accept or reject the offer. b. You and your roommate are dividing chores. The chores are written on slips of paper and drawn from a hat. You get to draw first. c. You are first in line to buy a raffle ticket. d. You can take vacation whenever you like, as long as no other employees are also scheduled to take vacation. You submit your vacation requests first this year.
Problem 13
Which player is likely to have higher bargaining power: a city government responding to angry citizens' demands that the trash be collected regularly, or the sanitation workers' union? Explain your answer. [LO 9.7\(]\)
Problem 14
Which player is likely to have higher bargaining power: a large, established company shopping around for a new parts supplier, or a start-up company trying to sell its parts? Explain your answer. \([\mathrm{LO} 9.7]\)
