...Your Name 07/07/14 –Economics Unit 3 Prisoner’s Dilemma/ Part 1 1. What is a prisoner’s dilemma game? The Prisoner’s Dilemma is the best-known game of strategy in Social Science. It help us understand what governs the balance between cooperation and competition in business. 2. What is a dominant strategy? If a strictly dominant strategy exists for one player in a game, that player will play that strategy in each of the game's Nash equilibrium. If both players have a strictly dominant strategy, the game has only one unique Nash equilibrium. 3. What is a cartel? A cartel is a collection of businesses or countries that act together as a single producer and agree to influence prices for certain goods and services by controlling production and marketing. 4. What is Nash equilibrium? (In economics and game theory) a stable state of a system involving the interaction of different participants, in which no participant can gain by a unilateral change of strategy if the strategies of the others remain unchanged Part 2 – Standard Example | Clyde confesses | Clyde is silent | Bonnie confesses | Both get 10 years. | Bonnie-6 months/Clyde gets 20 years. | Bonnie is silent | Clyde gets 6 months, Bonnie is charged 20 years. | Both get a year. | 1. What is the equilibrium in this game? The equilibrium in this game would be the participation on an agreement between both of the participants, but due to a case of dishonesty, one participant can...
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...RadioLab's podcast about the prisoner's dilemma gave another example of how this theory can affect if a person will defect or not. An important element that was pointed out during the show was the relationship between the two players. They then pointed out how the relationship affects the players decision. They asked the question, "Do I know this guy?" If not, im throwing him under the bus. When hearing this I thought about the card game that we played in class because if your partner was your friend the chances of you cooperating was higher than if it was a stranger. But one solution that they figured out was by conducting a computer terminant tournament where you submitted games concerning the prisoner's dilemma in which you played with other...
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...Prisoner’s Dilema is a game with non-zero sum in game theory. The simplest form of the game have two gamer (called prisoner), each prisoner always wants to get the benefit for himself, no matter what the other benefit is. The result of the game is not optimal. If two prisoners cooperate with each other, the result is the best. But each prisoner naturally has a motivation to escape the prison. So that I is the reason why they call “dilemma”. Prisoner’ Dilemma focuses on researching the instant decision making when the prisoners have no time or do not expect to the cooperation or association in the future. The question is that two prisoners think rationally; this means that each prisoner chooses the most benefit option for himself no matter what the other want to cooperate or not, so they always choose the uncooperative option and this makes them have nothing. If they choose the cooperative option, both of them have benefit. pp.229 We assume the numerical result of China and Mexico when each nation produces or does not produce steel components in the table below: Japan Mexico Producing Not Producing Producing +10 +10 -10 +20 Not Producing +20 -10 -5 -5 From the table we can see that If Mexico chooses producing steel components option and Japan does not produce steel components, Japan (+20) will get more benefit than Mexico...
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...Prisoner’s dilemma is as standard example of game theory that shows that two rational indicidual might not cooperate even if cooperation will fit their best interest. (wiki) Let me explain the prisoner’s dilemma first. In prisoner’s dilemma, each individual act rationally. That means each individual should do anything that benefit her/him. Let’s imagine Jack and Rose has committed a crime and are arrested. During the interrogating, they are separated in two interrogate room, the game is shown below. - - Rose stays silent ( cooperates) - Rose betrays (defects) - Jack stays silent (cooperates) - Each serves 1 year - Jack: 3 years - Rose: goes free - Jack betrays (defects) - Jack: goes free - Rose: 3 years - Each serves 2 years In this dilemma,...
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...Prisoner's Dilemma (Stanford Encyclopedia of Philosophy) 4/3/12 9:58 AM Open access to the SEP is made possible by a world-wide funding initiative. Please Read How You Can Help Keep the Encyclopedia Free Prisoner's Dilemma First published Thu Sep 4, 1997; substantive revision Mon Oct 22, 2007 Tanya and Cinque have been arrested for robbing the Hibernia Savings Bank and placed in separate isolation cells. Both care much more about their personal freedom than about the welfare of their accomplice. A clever prosecutor makes the following offer to each. “You may choose to confess or remain silent. If you confess and your accomplice remains silent I will drop all charges against you and use your testimony to ensure that your accomplice does serious time. Likewise, if your accomplice confesses while you remain silent, they will go free while you do the time. If you both confess I get two convictions, but I'll see to it that you both get early parole. If you both remain silent, I'll have to settle for token sentences on firearms possession charges. If you wish to confess, you must leave a note with the jailer before my return tomorrow morning.” The “dilemma” faced by the prisoners here is that, whatever the other does, each is better off confessing than remaining silent. But the outcome obtained when both confess is worse for each than the outcome they would have obtained had both remained silent. A common view is that the puzzle illustrates a conflict between individual and...
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...Forbes) to realize the profit of his lawn-mowing venture? Management should focus mainly on economic profits because by factoring in the opportunity costs, it allows them to make the best decision to better allocate their resources of all other competitive alternatives. If they don’t, they could be choosing options that could prevent the firm from making more profit. Managers often focus on accounting profit method because they are easy to obtain and are more commonly used to present the company performance to the investors. Question #4 Is the prisoners’ dilemma always a Nash equilibrium? Is Nash equilibrium always a prisoners’ dilemma? Explain. The Nash equilibrium states that NO participant can gain by a change of strategy as long as all the other participants remain unchanged. So the prisoner’s dilemma is always a Nash equilibrium. On the other hand, Nash equilibrium is not always a prisoner’s...
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...What is the problem of collective action in International Trade and what is the way to solve it in Global Political Economy? The problem of collective action in international trade is a problem of “prisoners dilemma” or “free riding”. There are also two different points of view that become applicable while trying to understand this problem – a liberal view and a realist view. The liberal view believes that economics is the most important factor when it comes to international trade and if countries take collective action it will be for economic reasons. On the other hand the realist view believes that economics does not drive collective action in trade but politics does. Collective action in the context of international trade can be defined as free trade where countries do not put barriers for flow of goods and services and they work together to remove these barriers to ensure greater efficiencies. This lack of barriers is not the normal course of actions as pointed out by realists who believe that all nations act in their selfish interest and unless they are an export oriented economy with greater export than import, they will have very little incentive to remove barriers. But, it is believed by realists that if multiple countries come together the incentive to remove barriers is higher. There is always a conflict going on for national states. They want to promote free trade as everyone agrees that free trade will benefit them but they do worry about their national sovereignty...
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...| The Need for Bureaucracy | | | | | | Name: Rob Lee TA: Vanessa Dolishny Student #: 250535352 Date: 2010-03-17 Throughout this course, inequality has been a topic that has been brought up in each sociological category. Some of these categories include religion, race and ethnicity, culture, education, and organizations and work. Karl Marx’s perspective of capitalist domination, which relates to each of these categories, suggests that the main cause of conflict in society is inequality, and this inequality brings about disadvantages to workers and benefits to the owners of capital. Although this perspective is backed by strong examples in today’s society, such as the decline in skilled labour leading to greater inequality between the proletariat (workers) and the bourgeoisie (capital owners), it spends too much time on blaming the structure of the system for making inequalities worse, without taking into consideration how much worse these inequalities would be today if the system were not structured the way it is. Therefore, when criticizing systems such as government, and its ability to organize and manage society, it is essential to recognize that without a government in place, and if society were to be adhocratic, the world would be chaotic and not nearly as efficient as it would be if a government were established. The government plays key roles in not only the stabilization of society, but also in helping it prosper in the long run. In...
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...theories allows for a more complete understanding of the issues involved in bargaining process and therefore helps to improve individuals negotiation skills. There are several different theories analyzing the process and outcome of bargaining process as follows:- 1. Integrative Approach Model 2. Game Theory 3. Behavioral Theory 4. Power Theory 5. Optimal Agent Independence 1. Integrative Approach Model The integrative approach divides the negotiating process into three phases: • Diagnostic • Formulation • Details In the practice of negotiation, these phases are not necessarily linear. Rather, they can be repeated and addressed many times throughout the negotiation process. The toughness dilemma in the integrative approach calls for tough diagnosis in order to clearly elucidate the true interests of each party. In the formulation phase, negotiators should be more soft, in order to find a common, mutually acceptable solution. In the detail phase, the negotiators should again take a tough stance to assure their party receives as much benefit from the bargaining process as possible. Diagnostic Phase The Integrative Approach focuses heavily on the diagnosis of the underlying issues which have created the conflict,...
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...payoff. Game theory is a way to study conflicts and strategies used to get best results. The decision process is made without full knowledge and that’s what drives people engage into game to strategize to get as good output as possible- perfectly to win everything or at least to lose as little as possible. Game theory as a mix of psychology, mathematics, logic and other academics areas can be useful in several ‘real life’ situations, including negotiations and business. It can be observed in an oligopoly market, when two companies offering a very similar product (for example gas) must find a way to win over their competitors. One can notice parallels in a situation of those companies and classical example of the game theory “prisoner dilemma”. Game theory may also be used in auctions, mergers and acquisitions, bargaining, real estate negotiations, salary negotiations and so on. The most common application of game theory in real life is setting price. Each company wants to set price as high as possible to maximize profit but also wants to win market share as big as possible. Companies can all set the same price for their products and split the profit between themselves or one could try and forecast an advantageous set of lower prices and basically win since their higher market share even at their lower prices will correspond to a higher profit than their...
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...Mandy Sanguigni Dr. Park Monopoly Simulation Reflections October 5, 2016 On October 5, 2016, during our Sociology 101 class we were played the game Monopoly. Each group member was given a different social class: middle class, upper middle class, or upper class and each needed to follow the given rules for each individual class. My particular selection was the upper middle class. Each member was given a starting asset amount, which my starting amount was only $1710.00, which was not much. It was frustrating and difficult to move ahead and succeed in the game when restricted with assets, property and overall not unable to buy particular areas around the board. I had a difficult time paying and buying appropriate buildings. The ending assets did have a slight gain of $438 to show an ending asset balance total of $2138.00. One who was upper class was taking advantage of their rules and punishing the under classes to pay extra and receive less money. The rules that were given were different for each social class. The social class I was in made me only buy land from only the three sides of the board (from GO to GO TO JAIL), buy houses and hotels as I wish, anytime the lower class received a bill through community chest or chance I would be responsible for paying the bill, and once landed on jail I would have to try rolling doubles or pay $25 just to get out. These rules were hard to follow with the amount of money given in the beginning and not collecting enough once pass GO. Some...
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...Game Theory and the Prisoner’s Dilemma Business Strategy Antoinette Monteiro Grand Canyon University DBA 815 January 13, 2016 The Definition of Game Theory The game is the object of game theory, which is an interactive situation. There are several players involved in the situation; a game with only one person is a decision problem. According to game theory, the players, their preferences, their information, the strategic actions available to them, affects the outcome. Game theory is conflict and cooperation; the agents are interdependent on the actions of others. These agents are individuals, groups, firms or a combination of these combined. Game theory provides a language to formulate, structure, analyze and understand different circumstances (Turocy and Stengel, 2001 p.4). History and Effects of Game Theory An example of game analysis is the idea of two players dominating the marketplace which was introduced by Antoine Cournot in 1838. Emile Borel, a mathematician proposed a game theory in 1921 and this research was expanded by Neumann in 1928 called the “theory of parlor games.” This theory was solidified in the publication, “The Theory of Games and Economic Behavior by Neumann and Morgenstern. This book pioneers the basic terms and problems that are still in use to this day (Turocy and Stengel, 2001, p.4). The mathematician, John Nash showed that finite games have an equilibrium point in which players choose actions which give the best outcome for themselves...
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...Analysis Of An Ethical Dilemma From Current Events Analysis of Ethical Dilemma from Current Events Karen Perion Grand Canyon University Analysis of Ethical Dilemma from Current Events “A dilemma is a problem that requires a choice between two options that are equally unfavorable and mutually exclusive” (Burkhardt, 2008, p. 118). Ethical dilemmas involve conflicting moral debates. People deal with dilemmas daily; whether or not they realize it. Deciding between two different jobs, figuring out which party to attend on the same night, or giving a patient pain medication knowing they are addicted are dilemmas one might be faced with. Knowing how to overcome and work your way through a dilemma is the expectation. I found an article in The SUN discussing a mother, Kerry, injecting her eight year old daughter, Britney, with Botox and giving her body waxes to make her a superstar. Every three months, Britney watches her mother prepare needles of Botox and fillers to be injected into her face (Pearce, 2011). Kerry, who is a beautician, buys these products online and injects them into her daughter’s lips, forehead and around her eyes. Britney also receives body waxes in hopes her hair will stop growing once she reaches puberty. Kerry says the reason she does this is because her pageant-daughter is destined to become an actress, model, or singer one day. Ethically, this could damage her daughter. The insecurities, self-esteem, and body image issues could be detrimental...
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...Paper Polarities and polarity management We have all encountered stubborn problems that never seem to go away. These situations are not really problems waiting to be solved, but instead dilemmas in need of management. We all face dilemmas in our personal and professional lives. These are ongoing, unsolvable issues and unfortunately are unavoidable. According to Johnson (1998), Polarity Management is an insightful way to understand and succeed in mastering some of life’s most complex situations. Polarity management is a method of dealing with complex situations by looking at all aspects of the situation. Seidler (2009) describes polarity management as a model that helps us deal with all dilemmas in life. This approach facilitates the consideration of all perspectives to a situation, thereby avoiding the one right-answer approach. The most comprehensive decisions seek the advantages of all alternatives to a situation. When encountering a challenging condition, we must first determine if it is a problem we can solve, or an ongoing polarity/dilemma that must be managed. Johnson (1998) suggests two questions for determining whether an issue is a problem or polarity: 1. Is the issue an ongoing challenge? 2. Is the dilemma opposite points of view interdependent? For every dilemma there exist polarities - interdependent opposites we need to consider in order to create an optimal solution to an issue. These opposing views do not function well independently. In fact...
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...Alisa Ali Dr. Jennifer Gliere Introduction to Music 5 December 2016 Final Project: Journey’s “Don’t Stop Believing” Journey is an American rock and roll band that was formed in 1973. It consists of guitarist and backing vocalist Neal Schon, bass player and backing vocalist Ross Valory, keyboard player and backing vocalist Jonathan Cain, drummer Steve Smith, and finally the leading vocalist Arnel Pineda (The Band). The band’s first album was released in 1975 but it was not a big hit. The following seven albums were not so lucky either. “After 1978, when big-voiced, feather-haired lead singer Steve Perry joined Journey, the group became a dominant force in what’s sometimes derisively referred to as “corporate rock”” (Murray). Hence, many contend that the band only became famous when Perry joined. However, it was only their eighth album, 1981’s Escape, which gave the band its popularity with its three top hits: “Who’s Crying Now”, “Don’t Stop Believing”, and “Open Arms”. Their next album, known as 1983's Frontiers, heightened their popularity even further and received number 2 on the album charts. The band was even given a contract with NFL Films for a documentary on the group members. The band broke up in 1984 and it wasn’t until 1995 that they reunited again. Additionally, the lead singer was replaced in 1998 and again in 2006 (Smith). Hence, this band was not a very stable one. However, they still had hope and were determined to make the band a success. The hit “Don’t Stop...
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