Social interactions Flashcards
What is altruism
The willingness to bear a cost to benefit someone else
What are two ways to solve social dilemas
Altruistic decisions are a way to solve social dilemmas.
Another way is through government intervention.
What is Game theory
Game theory is a set of models of strategic interactions.
What is best response in game theory
A strategy that will give a player the biggest payoff given the strategies of other players.
A social preference is a preference that places a value on what happens to other people, even if it results in lower payoff for the individual.
What does the Prisoner Dilemma explain?
It is when an outcome leading to a dominant strategy equlibrium does not lead to the greatest payoff individually for each player and does not also lead to the greatest total payoff.
What is Nash Equilibria?
Nash Equilibria is a set of strategies where each players’ strategy is the best response given the strategies chosen by other players.
What is a public good
A public good is a good for which one person using that good does not stop another person from beign able to use it.
