Unit 4.7 And 4.8 Flashcards
What is altruism
Why one chooses dominated over dominant strategy
Each persons utility given by their own playoffs
What are social preferences
If individual utility depends on what happens to other people as well as on their own payoffs
Why is altruism a social preference
Individual utility increases when the welfare of others increases
What are repeated interactions
Ongoing relations with people
What are social norms
Make decisions according to own preferences which are influenced by social norms
An understanding that is shared amongst most members of a community about people should behave towards each other in particular circumstances
What is experimental economics
Branch of economics that uses laboratory experiments or field experiments to understand life decisions
What are lab experiments
Observing behaviour is carefully controlled environment
What is the value of experiemnts
Surveys revealed preference
