Explain the essential difference between games in which moves are simultaneous and those in which moves are sequential
What will be an ideal response?
In a simultaneous-move game, each player has to decide what the other player's strategy will be and then act based on that strategy. Thus, one player cannot manipulate the other player by picking a particular strategy that might alter the other player's behavior. In contrast, in a sequential-move game, the player who gets to move first can pick a strategy that forces the other player's hand, so to speak. However, for the first mover's strategy to be successful, the first mover must be able to make a credible commitment to the strategy.
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A) increases; the real wage rate falls B) decreases; investment increases C) increases; the quantity of money increases D) increases; aggregate demand increases E) decreases; the real wage rate rises
It is likely that the owners have little to do with the day-to-day management of a firm in the case of
A) partnerships only. B) proprietorships only. C) corporations only. D) partnerships and corporations.