Tutorial 1 Flashcards
1
Q
Dominant strategy
A
A strategy that produces a higher payoff than any other strategy the player can use for every possible combination of its rivals’ strategies.
2
Q
Prisoners’ dilemma
A
A game in which all players have dominant strategies that result in profits (or other payoffs) that are inferior to what they could achieve if they used cooperative strategies.
3
Q
Best response
A
The strategy that maximizes a player’s payoff given its beliefs about its rival’s strategies.
4
Q
Nash equilibrium
A
A set of strategies such that, when all other players use these strategies, no player can obtain a higher payoff by choosing a different strategy.
5
Q
Static games
A
Games in which each player acts only once and the players act simultaneously.
