Behavioral Game Theory Assumes

question 55

Multiple Choice

Behavioral game theory assumes

• A)people act rationally.
• B)people are subject to biases that cause them to act irrationally.
• C)that people behave differently when playing games than when "playing for real."
• D)people optimize using all available information.

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Definitions:

GAAP

A set of widely adhered to accounting norms and standards that guide financial reporting, known as Generally Accepted Accounting Principles.

Fair Value

An estimate of the market value of an asset or liability based on current market prices or valuations.

Trading Securities

Financial assets that a company holds primarily for the purpose of selling them in the short term to profit from market price changes.

Unrealized Gains

Increases in the value of assets that have not yet been sold and therefore not turned into cash.