Question 1
Communication between players prior to the start of a game that does NOT affect the payoffs is called
◦ cheap talk.
◦ ineffective bargaining.
◦ a binding verbal contract.
◦ pareto efficient.
Question 2
If a game has a pure strategy Nash equilibrium, then
◦ it might also have a mixed strategy equilibrium.
◦ it does not have a mixed strategy equilibrium.
◦ at least one player has a dominant strategy.
◦ no player has a dominant strategy.