Question

A player in a game theoretic model is: a. anyone working for a firm that is operating strategically b. a firm that is operating as a perfect competitor c. a decision-making entity at a firm involved in a strategic game d. a monopolist who produces a unique product with no close substitutes e. a stockholder at a firm involved in a strategic game

Answer 1

Answer:  c. a decision-making entity at a firm involved in a strategic game

Explanation:

In a theoretical game, there are two players that have to embark on different strategies such that they make the maximum payoff. This maximum payoff strategy is known as the dominant strategy.

These two players are the decision making entities in the firms that are competing in the game because they are the ones that decide how the firm should react and what strategy to use. For instance, the owners of the two bakeries down the street are the players because they control what either bakery will do.