The Primary Advantage of Displaying a Game in Extensive Form

question 157

Multiple Choice

The primary advantage of displaying a game in extensive form instead of strategic form is that extensive form allows one to

• A) display the order in which decisions are made; strategic form does not.
• B) analyze repeated games; strategic form does not.
• C) determine the existence of a Nash equilibrium; strategic form does not.
• D) determine whether credible threats are possible; strategic form does not.

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Definitions:

Realization

The sale of assets when a partnership is being liquidated.

Co-Ownership

A legal status where two or more individuals share ownership rights in a property or asset.

General Partnership

A business structure where two or more individuals own and operate a business in partnership with each other, sharing both profits and liabilities.

Federal Income Tax

A tax levied by the United States federal government on the annual income of individuals, corporations, trusts, and other legal entities.