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28 Sep 2019
Explain the prisoners dilemma inherent in tacit collusion in an oligopoly.
Explain the prisoners dilemma inherent in tacit collusion in an oligopoly.
Retselisitsoe PokothoaneLv10
28 Sep 2019
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4. Game theory terminology
Select the term that best describes each definition listed in the following table.
|
Definition |
Nash Equilibrium |
Dominant Strategy |
Collusion |
Tit-for-tat Strategy |
Payoff Matrix |
Prisoners' Dilemma |
|
|---|---|---|---|---|---|---|---|
| A player's best choice, if it exists, regardless of his or her opponent's strategy | Ā | Ā | Ā | Ā | Ā | Ā | Ā |
| A set of strategies (one for each player) in which each player's strategy is the best option for that player, given the chosen strategy of the player's opponents | Ā | Ā | Ā | Ā | Ā | Ā | Ā |
| A case in which individually rational behavior leads to a jointly inefficient outcome | Ā | Ā | Ā | Ā | Ā | Ā | Ā |
| A visual representation of a game showing all possible strategies for each player and all potential outcomes and payoffs | Ā | Ā | Ā | Ā | Ā | Ā | Ā |
