Unit 4 Flashcards
1
Q
Tragedy of the commons
A
Common land or property being over exploited
2
Q
Free riding
A
One person bears the costs while the others enjoy the benefits
3
Q
Dominant strategy
A
A best response to all possible startegiesn of the other players
4
Q
Dominant strategy equilibrium
A
When all players play there dominant strategy
5
Q
Nash equilibrium
A
Set of strategies such that each players strategy is the best resposne to strategies chosen by everyone else
No player has incentive to deviate
6
Q
Prisoner dilemma
A
Game where dominant strategy equilibrium yields a lower total of individual payoffs
7
Q
Altruism
A
individuals willingness to bear cost in order to benefit others
8
Q
How to achieve better outcomes
A
Repeat games due to social norms, reciprocity and peer punishment
