This document contains a quiz on game theory concepts with multiple choice and open-ended questions. It covers topics like supplier selection, feasibility studies, auctions, modeling competition between two companies launching new products, analyzing prisoner's dilemma payoffs, and when is the optimal age for a man to get married from a game theory perspective. The answers provided apply game theory principles and solutions concepts like Nash equilibrium to analyze the scenarios presented in the questions.

1. Set 4: Quiz of Zero-Sum
Games Odd
Erwin Widodo

2. Category 1
20
Category 2
30
Category 3
20
Category 4
30
Category 5
20

3. Category 1: game interpretation

4. Question
For each of the followings, to what extent
game theory can be applied?
1. Supplier selection
2. Feasibility study of a new plant
3. Tennis game
4. Auction

5. AnswerGame theory can be applied when:
1. Supplier selection is done by more than 1 managers
from across departments who have conflicting interest
2. FS is done by more than 1 parties with conflicting
market, technical, financial motives
Game theory is very difficult to apply in tennis game since
this game is more to skill game rather than strategy and
chance ones
Advance game theory is very possible to be applied in
auction since this event always deal with more than 1
participant with conflicting and sometimes cooperative
interest

6. Category 2: model construction

7. QuestionTwo company I and J compete. They are about deciding
when to launch their new products, K and L respectively.
There are 2 marketing areas, namely M and N, in which M
is 50% larger market than that in N. If I decides to launch
its K ahead of L in a marketing area, on average, K will
occupy 80% of that local market. If the launching days for
both new product are about the same, K will occupy 60%.
Even if K is a laggard in intorducing its new product, still
this company posses 50% of local market potential.
Construct the GT model & suggest the solution for both
investors.

8. Answer
Category 2 answer for 30 points

9. Category 3: ability to apply

10. Question What is the solution of this game?
Company B
B1 B2
Company A
A1 4 M 2 M
A2 1 M 3 M

11. Answer
A1 = 25%
A2 = 75%
B1 = 50%
B2 = 50%
V = 2.5 M

12. Category 4: ability to comprehend

13. QuestionWhat is the solution of this game?
Sheriff
Highway Forest
Convict
Highway 0 1
Forest 1 1-1/n
The payoffs represent the chance of convict’s escape AND 1<=n<=

14. AnswerBoth sheriff and convict should take the highway
with probability 1/(n+1).
If either player follows this strategy, the convict will
escape with probability n/(n+1).
As n increase and with it the escape probability, the
less attractive the forest route becomes to the
sheriff.
Nevertheless that is the route the sheriff must take
with accepting its increasing probability.

15. Category 5: Long life learning

16. QuestionWhy you boys should not get marry
before 26 years old?
Find the reason in the perspective of
game theory by considering:
• First love at 15 years old
• Too old after more than 45 years old
• Natural number

17. Answerhttp://www.gametheorystrategies.com/
The answer is surprisingly simple. If there are a number of potential
girlfriends, using the letter ‘n’ to represent the number, then he should
reject the first n divided by ‘e’ (e is a key number in mathematics and has
a value of about 2.72). He should then accept the next girlfriend after
that who is better than all the preceding ones. If none of them are better
than all the earlier ones then he ends up with the last girlfriend.
This is his optimal strategy and he ends up with the best girlfriend as his
wife about 37% of the time (actually with a probability of 1 divided by e).
For a bit of fun let’s think about how soon a man (or woman) should get
married using this rule. Let’s assume that he is 15 and wants to get
married sometime before he is 45. This gives him 30 years to find his
optimum partner. According to the theory he should not settle down
until at least 30 divided by 2.72 years have gone by. This works out to be
11 years, so he shouldn’t get married before he is 26 otherwise he has
reduced his chance of finding his best wife!