Week 9&10 Flashcards
How does game theory apply to the economics of discrimination?
Game theory can be used to analyze the strategic interactions between individuals or groups that result in discrimination, such as employers discriminating against certain groups in hiring or wage decisions.
How can game theory help us understand why there is discrimination in society?
By analyzing the incentives and constraints faced by individuals and groups, game theory can provide insights into the reasons why discrimination may occur, such as the desire to maximize profits or minimize costs.
How can game theory be used to detect discrimination?
Game theory can be used to develop and test hypotheses about discrimination, such as by comparing the outcomes of different scenarios where discrimination may or may not occur.
What happens when irrational individuals interact strategically?
When irrational individuals interact strategically, their decisions may not be based on logic or reason, which can lead to unpredictable or irrational outcomes.
What happens when rational people with other-regarding (social) preferences interact?
When rational individuals with other-regarding (social) preferences interact, their decisions may be influenced by their concern for the well-being of others, which can lead to more cooperative and equitable outcomes.
How does game theory help us understand the consequences of discrimination?
Game theory can help us understand the consequences of discrimination by analyzing the costs and benefits of discrimination for different individuals and groups.
How can game theory be used to identify potential solutions to discrimination?
Game theory can be used to identify potential solutions to discrimination by analyzing the incentives and constraints facing different individuals and groups, and by testing different strategies and policies that may reduce discrimination.
What are some examples of game theory being used to study discrimination?
Examples of game theory being used to study discrimination include analyzing the effects of affirmative action policies on hiring outcomes, or examining the role of social norms and stereotypes in wage discrimination.
What are the limitations of using game theory to study discrimination?
Some limitations of using game theory to study discrimination include the assumption of rational behavior, which may not always be applicable in real-world situations, and the complexity of modeling the interactions between multiple individuals and groups.
