PS 491/591 Midterm Questions #1 [in no particular order]:

All the questions that say “provide examples” require you to use examples either from our reading collection or you can invent your own.

1. Find Nash equilibrium in a game in an extensive form and in a game in a strategic form [two simple games will be given].

2. Describe the process and key elements of formal modeling. Provide examples.

3. How do we model decisions when uncertainty is involved? State the problem and show how it can be solved. Provide several examples.

4. What is agenda-setting? Examine the power of an agenda-setter using either (1) single dimension issue space model or (2) the Condorcet model (3 players, 3 alternatives).

5. What is equilibrium and why is it important? Give formal definition and an example from the readings and an example of your own.

6. What is rational according to the rational choice theory? Give examples of rational vs. irrational behavior.

7. Speculate why people may cooperate in a PD game? Think of at least three possible explanations of cooperation in a PD game. Provide examples.

8. Explain how Game Theory can help us explain and understand political manipulation. Provide examples.

9. Think of at least two everyday life examples (non political) where Game Theory can help predict and/or explain the outcome.

10. Why is the Prisoners’ Dilemma model so important? Provide at least three everyday life examples that have a “flavor” of PD games.

11. What is an “Evil Example”? Why is called “Evil”? Discuss pluses and minuses of different electoral systems that you are aware of. Provide your own opinions on which are better than others.

12. Which games are used to model situations that require “coordination”? How many Nash Equilibrila can exists in such games? Provide your own examples of so-called “coordination mechanisms”.