Chap 3+4 Definitions Flashcards
Backward induction
Reasoning leading to mutual defection when the end of the interaction is known
Chicken
Game with two possible outcomes in which some actors cooperate and others defect
Competition
Action among several players each for his own benefit
Conflict or zero-sum game
An interaction in which the gains for some people imply losses for others
Cooperation
Action for the common benefit
Coordination game
An interaction in which there are efficient results for all participants
Dominant strategy
The best actor’s decision regardless of the other actor’s decision
Equilibrium
Stable outcome of a game. In Nash’s concept, an outcome from which no actor has incentives to move away by changing his strategy unilaterally
Maxi-min
Criterion of decision to prevent the worst result and guarantee the ‘maxi-min minimum’
Positive or non-zero-sum game
An interaction in which mutual cooperation can produce gains for all participants
Prisoner’s Dilemma
Non-zero-sum hame with an inefficient equilibrium outcome and in which nobody cooperates
Stag Hunt
An assurance game with mutual defection and mutual cooperation equilibrium outcomes
Tit for Tat
Meta-strategy for repeated plays of the Prisoner’s Dilemma that can produce sustained cooperation
Critical mass
Number of participants required to generate additional participation
Efficient leadership
The provision of the amount of public goods desired by the followers at optimum cost
