Unit 4 Strategic interactions and social dilemmas Flashcards
(6 cards)
1
Q
Social dilemmas
A
situation where actions are taken independently to fulfil their private objectives result in an inferior outcome that may be achieved through collaboration
- solved with altruism
2
Q
Game theory
A
way of modelling strategic interactions
3
Q
Specifics of games
A
- the players
- the feasible strategies
- the info
- the payoffs
4
Q
Nash equilibrium
A
- overlap of the players’ best responses
no player would benefit from unilaterally changing their current action
5
Q
Pareto-efficienct
A
no alternative where at least 1 party would be better off and none would be worse off
6
Q
Conflict of interest
A
more than 1 nash equilibrium
