Week 5_ Unit 4 SOCIAL INTERACTIONS

Question 1

What is social dilemma?

Answer 1

When people do not take account of the effect of their decisions on others

Question 2

Social interaction?

Answer 2

A situation involving more than one person/party,

where one’s actions affect both their own and other people’s outcomes

Question 3

Strategic interaction

Answer 3

social interaction where people are aware of the

ways that their actions affect others

Question 4

Strategy and Game def?

Answer 4

Strategy:
Action(s) that people can take when engaging in a social
interaction

Game:
A model of strategic interaction that describes the players, the feasible strategies, the information that the players have, and their
payoffs

Question 5

Game theory?

Answer 5

set of models of strategic interactions. It is widely used

in economics and elsewhere in the social sciences

Question 6

Dominant strategy?

Answer 6

Dominant strategy: A best response to all
possible strategies of the other player (does
not always exist!)

Question 7

Nash equilibrium?

Answer 7

Nash equilibrium: A set of strategies (one
per player), such that each player’s strategy
is the best response to the strategies chosen
by everyone else

WHere the nash equilibrium is NOT the best outcome for either

Question 8

Altruism?

Answer 8

selfless concern for the well-being of others.

Question 9

Reciprocity

Answer 9

Being kind/helpful to others who are kind/helpful, and vice

versa

Question 10

Fairness (inequality aversion)

Answer 10

Disliking outcomes in which some

individuals receive more than other