POL SCI 171C Study Guide - Final Guide: Coordination Game, Pareto Efficiency, Qwerty
16 Mar 2013
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Explain how positive or negative externalities exist in the prisoners" dilemma game: if i defect => negative externality for my opponent, if my opponent cooperates => positive externality for me. Are any pareto inefficient: one defect, defect, ne is not pareto efficient. One aspect of a coordination game is that there are multiple equilibria. Is society"s choice of the arrange of the arrangement of letters on a typewriter a coordination game: yes, keyboard manufacturers design qwerty keyboards, all users then learn how to type the qwerty system. In a stag hunt game two hunters stand on either side of a path, waiting for a stag to approach. Each hunter decides whether to abandon the stag hunt and kill a rabbit or help his or her fellow hunter kill a stag. If both hunters choose option 2, they kill the stag and split it between them. This is the most preferred outcome of both hunters.
