These questions are related to game theory & design thinking:

Question 6

Which of the following best describes the essential reason to use mechanism design?

Group of answer choices

1. principal's interest
2. information asymmetry
3. moral concern
4. agency problem v

Question 7

A finite repetition game with prisoners' dilemma ___

Group of answer choices

1. might be solved by cooperation v
2. can be solved by cooperation
3. None of the listed choices
4. cannot be solved by cooperation

Question 8

In a game with the following payoff matrix, to avoid a worse outcome, which strategy below could be used?

		Player B
		up	down
Player A	up	(10,10)	(25,5)
down	(5,25)	(20,20)

Group of answer choices

1. Impose a penalty of -20 if any player chooses down strategy
2. Impose a penalty of -2 if any player chooses down strategy
3. Impose a penalty of -2 if any player chooses up strategy
4. Impose a penalty of -20 if any player chooses up strategy v

Question 9

In a managerial supervision setting, to motivate the agent to take the position, which of the following is correct?

Group of answer choices

1. Never require the agent to take any effort.
2. None of the listed choices
3. offer extra bonus if the profit of project is better than expectation v
4. The utility of taking the job should be at least equal to the utility of alternative jobs with not effort requirement

Question 10

Principals would like to design an incentive scheme to motivate the self-interest agents to take actions towards an outcome that favours the principal. This kind of design is called

Group of answer choices

1. Mechanism design
2. all the listed choices
3. reverse game theory
4. Incentive design