Practice question · Sort into groups
Sort each business situation by the game it most resembles.
Groups: Prisoner’s dilemma · Coordination game · First-mover game
- Two supermarkets locked in a price war neither wants
- Rival ad blitzes that cancel out but drain both budgets
- Tech firms choosing a common charging standard
- Racing to open the first store in a new district
Hints
- Ask whether the parties want to match, to undercut, or to move first.
- A dilemma punishes mutual defection; a coordination game rewards agreeing.
Show the answer
Prisoner’s dilemma: Two supermarkets locked in a price war neither wants, Rival ad blitzes that cancel out but drain both budgets
Coordination game: Tech firms choosing a common charging standard
First-mover game: Racing to open the first store in a new district
Why
Dilemmas punish mutual defection, coordination games reward matching, and first-mover games reward speed.
Practise Game Theory in Business
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