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14 Cards in this Set
- Front
- Back
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Basic elements of a game |
The players, the strategies available to each player and the payoffs each player receives for each possible combination of strategies. (Player, strategy and payoff) |
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Payoff matrix |
A table that describes the payoffs in a game for each possible combination of strategies. |
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Dominant strategy |
One that yields a higher payoff no matter what the other players in a game choose |
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Dominated strategy |
A strategy available to a player that yields a lower payoff than some other strategy |
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Nash equilibrium |
Any combination of strategies in which each player's strategy is his or her best choice, given the other player's strategies. |
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Prisoner's dilemma |
A game in which each player has a dominant strategy and, when each plays it, the resulting payoffs are smaller for each than if each had played a dominated strategy |
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Repeated prisoner's dilemma |
A standard prisoner's dilemma that confronts the same players repeatedly. |
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Tit - for - tat |
A strategy for the repeated prisoner's dilemma in which players cooperate on the first move, then mimic their partner's last move on each successive move. |
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Decision tree (game tree) |
A diagram that describes the possible moves in a game in sequence and lists the payoffs that correspond to each possible combination of moves. |
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Ultimatum bargaining game |
One in which the first player has the power to confront the second player with a take-it-or-leave-it offer. |
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Credible threat |
A threat to take an action that is in the threatener's interest to carry out |
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Credible promise |
A promise that is in the interests of the promisor to keep when the time comes to act |
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Commitment problem |
A situation in which people cannot achieve their goals because of an inability to make credible threats or promises. |
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Commitment device |
A way of changing incentives so as to make otherwise empty threats or promises credible |
