The Art of Deciding

Education · 10 questions

The logic that appears when two minds meet.

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1. What is the classic game where two people choose to cooperate or betray?

   1. A zero-sum game
   2. A coordination game
   3. The prisoner's dilemma
   4. The ultimatum game
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   C) The prisoner's dilemma

2. What happens in the prisoner's dilemma when both act purely in self-interest?

   1. Both end up worse off
   2. Both get the best outcome
   3. One wins and one loses
   4. The outcome is unchanged
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   A) Both end up worse off

3. What is a situation where no player gains by changing strategy alone?

   1. A Pareto optimum
   2. A Nash equilibrium
   3. A dominant strategy
   4. A mixed strategy
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   B) A Nash equilibrium

4. What are games called where one side's gain equals the other's loss?

   1. Positive-sum games
   2. Cooperative games
   3. Repeated games
   4. Zero-sum games
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   D) Zero-sum games

5. What problem does one person cutting and the other choosing solve?

   1. Making the decision faster
   2. Reducing the cost
   3. Fair division without trusting anyone
   4. Reaching unanimity
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   C) Fair division without trusting anyone

6. What does the 'winner's curse' describe at an auction?

   1. The winner backs out at the end
   2. Prices unexpectedly collapse
   3. The sale is cancelled
   4. The winner has usually overpaid
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   D) The winner has usually overpaid

7. What makes cooperation easier in repeated games?

   1. The chance of meeting again in future
   2. Having more players involved
   3. Shortening the time available
   4. Keeping the rules hidden
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   A) The chance of meeting again in future

8. Adding a new option can change which of the earlier options people prefer.

   1. True
   2. False
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   A) True

9. People tend to feel a loss more strongly than a gain of the same size.

   1. True
   2. False
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   A) True

10. Making a decision with more people always produces a better outcome.

    1. True
    2. False
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    B) False