Game Theorist Robert Axelrod Decided to Examine the Choices That

question 93

Multiple Choice

Game theorist Robert Axelrod decided to examine the choices that participants make in a long-run setting.He ran a sophisticated computer simulation in which he invited scholars to submit strategies for securing points in a prisoner's dilemma tournament over many rounds.All the submissions were collected and paired,and the results were scored.After each simulation,he eliminated the weakest strategy and re-ran the tournament with the remaining strategies.This evolutionary approach continued until the best strategy remained.Among all strategies submitted,which strategy dominated?

• A) tit-for-tat
• B) tit-for-two-tats
• C) Axelrod equivalency
• D) profit-maximization
• E) dominated

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Definitions:

Call

A contract that grants the holder the ability, though not the requirement, to purchase a certain quantity of an underlying asset at a predetermined price before a specified deadline.

Exercise Price

The set price at which an option's holder has the right to purchase (call) or sell (put) the underlying asset.

Stock Price

indicates the current price at which a share of a company can be bought or sold on a stock exchange.

Issue Value

The price at which a new issue of securities is offered for sale to the public or the nominal value of a security at the time of its issuance.