In Game Theory, the Credibility of a Threat

question 161

Multiple Choice

In game theory, the credibility of a threat

• A)determines whether or not a Nash equilibrium to a game exists.
• B)influences the degree of cooperation between two rivals.
• C)is relevant only in simultaneous games.
• D)determines whether or not a firm has a dominant strategy.

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Definitions:

F Value

A statistic used in ANOVA tests, representing the ratio of variance between groups to variance within groups.

P-value

The likelihood of achieving a test statistic as extreme or more so than the observed one, under the assumption that the null hypothesis holds.

Degrees of Freedom

The number of independent values or quantities that can be assigned to a statistical distribution or to a system of equations, minus the number of equations constraining them, crucial in significance testing.

Completely Randomized Design

A type of experimental design where all subjects are randomly assigned to treatments without any restrictions or stratifications.