Unit 4 Flashcards
What is a social dilemma?
This is a situation in which actions taken independently by self interested individuals result in a socially suboptimal outcome. i.e. one that is inferior to a feasible outcome that would have occurred if they worked together.
What is a social interaction?
This is a situation in which the actions taken by individuals affect other people’s outcomes as well as their own
What is a strategic interaction?
This is when in a social interaction, people are aware of how their actions affect both their own and others people outcomes
What is a strategy?
This is an action that a player may take in a social interaction(they are aware of the mutual dependence)
What is an outcome?
This is a situation that results from the combination of strategies from both players
What is a game?
This is a model of players’ strategic interactions
What is the best response?
The strategy that will give the player the highest output given what the other players select
What is the dominant strategy?
This is the strategy that will give the player the highest payoff no matter what the other does
What is the dominant strategy equilibrium?
The outcome of a game in which every player plays their dominant strategy
What is the nash equilibrium
This is a situation where no player has the incentive to unilaterally change their strategy
What does the outcome of the prisoners dilemma show?
That the dominant strategy equilibrium of a game sometimes results in an outcome that is not the best feasible one
What is a social preference?
These place a value on what happens to the other person, even if it results in lower payoffs for the individual e.g. Altruistic Reciprocity Inequality aversion Spite
Why do players in the ultimatum game have higher incentive to cooperate?
The interactions are done repeatedly, therefore there is a threat of a punishment.
Is the dominant strategy of the chicken game the nash equilibrium?
No, they’d both be better off with a different outcome
What happens when more responders are added to the ultimatum game?
They are more likely to take the offer since declining means they lose out while the rest gain.
