Part 1: T/F (20 total points (10 questions, 2 points/question) 1. 2. 10. Risk is strategic uncertainty In a zero-sum game, it can be in one's self-interest to develop a skill so as to use it less often against one's opponent than it would have been used had one not developed the skill Cheap talk equilibria are brittle whenever one or both players are unreliable Screening occurs when a player engages in actions that induce an opponent to believe that player's information is bad, even if it isn't bad A promise is empty when the player's best response to the favored action is already the most harmful thing that can be done to the opponent A strategic move is a move that will not alter another player's action from what she would otherwise choose in equilibrium All strategic moves are either conditional or unconditional Sharing risk and paying to reduce risk are two strategies for confronting risk The Dunning-Kruger Effect is the tendency found among the most competent and the most skilled to be the most aware of their competence and skill Signaling occurs when a player engages in actions that induce an opponent to believe that player's information is good even if it isn't good