Study Guide for Final Exam (Terms) Flashcards
Game
Opportunity to gain utility through strategic interaction with at least one other ‘player.’ (A chance to realize utility through strategic interaction).
Zero-sum Game
A game in which one player’s loss is another player’s gain (technically, this is a constant-sum game).
Strategy
A way of playing a game; a plan of action (covering all contingencies)
Outcome
The consequences of a plan of action, given what other players do.
Expected Utility
The value one gains (or loses) from the probable outcomes of a particular strategy.
Dominant Strategy
A strategy that is preferable to any other strategy (e.g., it brings better outcomes) regardless of what the other player does. Always maximizes a player’s utility.
Iterated Game
A game that is played more than once.
Pure strategy
Playing only one strategy. Single-play games have pure strategies.
Mixed strategy
Playing different strategies with a specific probability. Multiple-play (iterated) games may have either pure or mixed strategies.
Pareto Optimum
An outcome that is better for all players in a game; one that is collectively perferable.
Nash Equilibrium
A predicted outcome (solution) in a game, when neither “player” wishes to change its strategy unilaterally.
Solution
The rational outcome of strategic interaction.
Instumental rationality
A decison is good (rational) if it is made using a good decision process, carefully considering cost and benefits.
Value rationality
A decision is good (rational) if it leads to a good outcome
Allison’s Model II
Policy is the result of choices that serve the interests of bureaucracies and their need for standard operating procedures.