social interactions

Question 1

game theory

Answer 1

way of understanding how people interact based on the constraints that limit their actions, motives, and beliefs about what others will do

Question 2

freerider

Answer 2

one person does all the work while the others benefit off of it with doing no work

Question 3

altruistic self sacrifice

Answer 3

individuals sacrifice themselves for the common good of others

type of social preference

Question 4

government policies

Answer 4

regulate behavior through laws and rules to reduce certain impacts

Question 5

division of labor

Answer 5

who will specialize doing what task

Question 6

payoffs

Answer 6

incomes received if hypothetical row and hypothetical column were selected in game theory model

Question 7

best response

Answer 7

highest payoff for one party based on the what the other party does

Question 8

invisible hand

Answer 8

people pursuing their own self-interests unintentionally promote the well being of the society as a whole

Question 9

inequality inversion

Answer 9

fairness

Question 10

reciprocity

Answer 10

person’s tendency to act with kindness toward a person they have received kindness from before

Question 11

invisible hand game

Answer 11

demonstrates how markets (through self-interest) can lead to mutually beneficial outcomes without coordination

Question 12

prisoner’s dilemma

Answer 12

individuals acting in own self interest may end up with suboptimal outcome due to lack of trust in other person