In game theory, it is often uncertain what the other party will do, so there could be more than one "best" outcome. In that case, the advantage is called:
A) risk-avoidance advantage.
B) first-mover advantage.
C) circular advantage.
D) parameter testing.

Question

Quizplus · Accepted Answer

First-mover advantage refers to the benefits that one party may gain by making a move before others in a strategic situation, such as setting prices or launching a new product. This advantage can be significant in game theory contexts where the actions of others are uncertain, allowing the first mover to shape the game's outcome to their benefit.

In Game Theory, It Is Often Uncertain What the Other