# Logical Game Theory > Application of logic in game theory, including strategic reasoning and decision-making frameworks - **Canonical URL:** https://flashcards.world/flashcards/sets/22189156-c49e-4bd3-bb39-ab2037a2080b/ - **Markdown URL:** https://flashcards.world/flashcards/sets/22189156-c49e-4bd3-bb39-ab2037a2080b.md - **Level:** advanced - **Languages:** en → en - **Total Cards:** 52 ## Flashcards (52 Cards) | # | Front (Term / Prompt) | Back (Definition / Answer) | Example | Multiple-Choice Options | | :--- | :--- | :--- | :--- | :--- | | 1 | What is 'strategic form' of a game? | Strategic form is a representation of a game that summarizes the strategies and payoffs for all players in a matrix format. | | | | 2 | What is the concept of 'social welfare' in game theory? | Social welfare refers to the overall well-being of all players in a game, often evaluated in terms of efficiency and equity. | | | | 3 | What is a 'symmetric game'? | A symmetric game is a game where the payoffs are the same for players if they swap their strategies. | | | | 4 | What is a mixed-strategy Nash Equilibrium? | A mixed-strategy Nash Equilibrium occurs when players randomize over strategies, and no player can improve their expected payoff by changing their strategy. | | | | 5 | What is a payoff matrix? | A payoff matrix is a table that describes the payoffs in a strategic game for each player based on their chosen strategies. | | | | 6 | What is a bargaining game? | A bargaining game is a game where players negotiate the division of a resource or payoff. | | | | 7 | What is the role of information in game theory? | Information affects players' strategies and outcomes; games can be classified as complete or incomplete information games. | | | | 8 | What is the prisoner's dilemma? | The prisoner's dilemma is a standard example of a non-cooperative game where two players can either cooperate or betray each other, leading to suboptimal outcomes. | | | | 9 | What is a repeated game? | A repeated game is a game that is played multiple times, allowing players to adjust their strategies based on past outcomes. | | | | 10 | What is a dominant strategy? | A dominant strategy is a strategy that is the best choice for a player, regardless of what the other players do. | | | | 11 | What is a 'non-symmetric game'? | A non-symmetric game is a game where players have different strategies and payoffs. | | | | 12 | What is the concept of 'utility' in game theory? | Utility is a measure of preferences over a set of goods or outcomes, representing the satisfaction or value a player derives. | | | | 13 | What is 'adverse selection'? | Adverse selection occurs when one party in a transaction has more information than the other, leading to suboptimal outcomes. | | | | 14 | What does 'Pareto efficiency' mean? | Pareto efficiency refers to a situation where no individual can be made better off without making someone else worse off. | | | | 15 | What is a coordination game? | A coordination game is a game where players benefit from making the same choices or coordinating their strategies. | | | | 16 | What is the difference between cooperative and non-cooperative games? | Cooperative games allow for binding agreements, while non-cooperative games do not. | | | | 17 | What is a signaling game? | A signaling game is a game in which one player (the sender) sends a signal to another player (the receiver) to convey information. | | | | 18 | What is a mixed strategy? | A mixed strategy is a strategy in which a player randomizes over two or more pure strategies. | | | | 19 | What is the significance of the 'Shapley value'? | The Shapley value is a solution concept that assigns a unique distribution of payoffs to players based on their contributions to the total payoff. | | | | 20 | What is a 'contingent contract'? | A contingent contract is an agreement that specifies actions or payoffs based on the occurrence of certain events. | | | | 21 | What is a zero-sum game? | A zero-sum game is a situation in which one player's gain is exactly balanced by the losses of other players. | | | | 22 | What are the two main types of games in game theory? | The two main types are cooperative games and non-cooperative games. | | | | 23 | What is the concept of 'rationality' in game theory? | Rationality in game theory assumes that players will always choose the strategy that maximizes their payoff. | | | | 24 | What is the concept of 'incentive compatibility'? | Incentive compatibility refers to a situation where players have the right incentives to act according to their true preferences. | | | | 25 | What is 'mechanism design'? | Mechanism design is a field in game theory that focuses on creating rules or mechanisms that lead to desired outcomes in strategic settings. | | | | 26 | What is game theory? | Game theory is the study of mathematical models of strategic interaction among rational decision-makers. | | | | 27 | What is a common knowledge in game theory? | Common knowledge refers to information that is known by all players and that all players know that all players know it, and so on. | | | | 28 | What is a 'public goods game'? | A public goods game is a game where players decide how much to contribute to a common resource, balancing individual costs against collective benefits. | | | | 29 | What is 'asymmetric information'? | Asymmetric information occurs when one party in a transaction has more or better information than the other party. | | | | 30 | What is a 'saddle point' in game theory? | A saddle point is a situation in a zero-sum game where the strategy is optimal for both players, representing a Nash Equilibrium. | | | | 31 | What is the significance of the 'folk theorem' in game theory? | The folk theorem states that in repeated games, a wide range of outcomes can be sustained as equilibria, provided players are sufficiently patient. | | | | 32 | What is a perfect information game? | A perfect information game is one where all players know the moves previously made by all other players. | | | | 33 | What is a 'best response function'? | A best response function describes the optimal strategy for a player, given the strategies of other players. | | | | 34 | What is 'evolutionary game theory'? | Evolutionary game theory studies strategic interactions in populations where strategies evolve over time based on their success. | | | | 35 | What is a Bayesian game? | A Bayesian game is a game in which players have incomplete information about other players, often modeled with beliefs represented by probability distributions. | | | | 36 | What is 'moral hazard'? | Moral hazard is a situation where one party takes risks because they do not bear the full consequences of their actions. | | | | 37 | What is a 'common-pool resource' problem? | A common-pool resource problem arises when individuals overuse a shared resource, leading to depletion and negative outcomes for all. | | | | 38 | What is 'focal point' in game theory? | A focal point is a solution that players tend to choose in the absence of communication, often due to its prominence or naturalness. | | | | 39 | What is the difference between static and dynamic games? | Static games are played in a single stage, while dynamic games involve multiple stages and may include time-dependent strategies. | | | | 40 | What is the concept of 'best response'? | A best response is a strategy that produces the most favorable outcome for a player, given the strategies chosen by other players. | | | | 41 | What is 'bounded rationality'? | Bounded rationality is the concept that decision-makers are limited in their ability to process information and make optimal choices. | | | | 42 | What is 'extensive form' representation of a game? | Extensive form representation is a way to depict a game using a tree structure that shows the sequential moves of players. | | | | 43 | What is 'risk dominance'? | Risk dominance refers to a situation where one strategy is preferred over another due to lower risk of loss, even if it may not be the best response. | | | | 44 | What is backward induction? | Backward induction is a method used to solve finite games by analyzing the game from the end to the beginning. | | | | 45 | What is a subgame perfect equilibrium? | A subgame perfect equilibrium is a refinement of Nash Equilibrium that requires players' strategies to be optimal in every subgame. | | | | 46 | What is a coalition in game theory? | A coalition is a group of players who coordinate their strategies to achieve a better outcome than they would individually. | | | | 47 | What is 'normal form' representation of a game? | Normal form representation is a way to represent a game using a matrix that shows the payoffs for each combination of strategies. | | | | 48 | What is a commitment in game theory? | A commitment is a strategy where a player makes a binding decision that influences the actions of others. | | | | 49 | What is a strictly dominated strategy? | A strictly dominated strategy is one that results in a worse payoff than another strategy, regardless of what the other players do. | | | | 50 | What is a strategy profile? | A strategy profile is a combination of strategies chosen by all players in a game. | | | | 51 | What is a Nash Equilibrium? | A Nash Equilibrium is a situation in a game where no player can benefit by changing their strategy while the other players keep theirs unchanged. | | | | 52 | What is a threat in game theory? | A threat is a strategy that involves a player indicating they will take a negative action if certain conditions are not met. | | | --- Study this deck interactively with FSRS-6 spaced repetition, audio review, and multiple-choice mode at [Flashcards World](https://flashcards.world/flashcards/sets/22189156-c49e-4bd3-bb39-ab2037a2080b/).