Week 9 - Collective action games Flashcards
What are some examples of collective action games? (3)
Multiplayer prisoners dilemma
Neighbourhood game
Critical mass game
Just have to go over these to remember the mechanisms - can’t really put it on to flashcards
What is the public goods game?
Each player in a group receives an endowment. They choose how much of it to contribute to a common project. All contributions are multiplied by 1.6 and then divided evenly between the group
What is the equation for profit in the public goods game?
pi = E - gi + (1.6*gj)/n
What is the NE in the public goods game?
Everyone contributes nothing.
What happens if you add punishment into the public goods game?
contributions increase
In collective action games, what does a players payoffs depend on?
The players action and number of people who choose to participate: pi(P,n) =…
How do you find best responses in collective action games?
By comparing pi(NP,n) and pi(P,n+1)
What is the climate dilemma and why is it an example of a multiplayers prisoners dilemma?
Countries trying to decide whether or not to reduce emissions. NE is no one reduces. Prisoners dilemma because the nash equilibria is not socially optimal (everyone would be better off to cooperate)
How could you sustain cooperation in the prisoners dilemma? (2)
Punish countries that do not achieve their emissions targets
Establish a social norm for emissions reductions
How do you work out the social optimum in the profession choice game?
Work out total payoffs and then set FOC=0
When is an equilibria unstable?
A small deviation from it would initiate convergence to a different equilibria.
What does it mean if a NE has a small basin of attraction?
When you are there, no players have an incentive to deviate, but even a small perturbation will destabilise it.
Are there games with sequential and simultaneous moves?
Yes - will have to practise.
