0

Cooperation and Experimental Economics

Description: This quiz evaluates your understanding of cooperation in experimental economics, covering concepts such as game theory, prisoner's dilemma, and public goods games.
Number of Questions: 15
Created by:
Tags: experimental economics cooperation game theory prisoner's dilemma public goods games
Attempted 0/15 Correct 0 Score 0

In a prisoner's dilemma game, what is the dominant strategy for each player?

  1. Cooperate

  2. Defect

  3. Tit-for-tat

  4. Grim trigger


Correct Option: B
Explanation:

In a prisoner's dilemma game, the dominant strategy for each player is to defect, regardless of the other player's choice. This is because each player's payoff is higher if they defect, even if the other player cooperates.

What is the Nash equilibrium in a prisoner's dilemma game?

  1. (Cooperate, Cooperate)

  2. (Defect, Defect)

  3. (Cooperate, Defect)

  4. (Defect, Cooperate)


Correct Option: B
Explanation:

The Nash equilibrium in a prisoner's dilemma game is (Defect, Defect). This is because each player's best response to the other player's strategy is to defect, regardless of the other player's choice.

What is the tit-for-tat strategy in a prisoner's dilemma game?

  1. Always cooperate

  2. Always defect

  3. Cooperate on the first move, then do whatever the other player did on the previous move

  4. Defect on the first move, then do whatever the other player did on the previous move


Correct Option: C
Explanation:

The tit-for-tat strategy in a prisoner's dilemma game is to cooperate on the first move, then do whatever the other player did on the previous move. This strategy is often successful in promoting cooperation because it punishes defectors and rewards cooperators.

What is the grim trigger strategy in a prisoner's dilemma game?

  1. Always cooperate

  2. Always defect

  3. Cooperate until the other player defects, then defect forever

  4. Defect until the other player cooperates, then cooperate forever


Correct Option: C
Explanation:

The grim trigger strategy in a prisoner's dilemma game is to cooperate until the other player defects, then defect forever. This strategy is often successful in promoting cooperation because it punishes defectors severely.

What is a public goods game?

  1. A game in which each player's payoff depends on the actions of all other players

  2. A game in which each player's payoff is independent of the actions of all other players

  3. A game in which each player's payoff is determined by a random event

  4. A game in which each player's payoff is determined by their own actions only


Correct Option: A
Explanation:

A public goods game is a game in which each player's payoff depends on the actions of all other players. This is in contrast to a private goods game, in which each player's payoff is independent of the actions of all other players.

What is the free rider problem in a public goods game?

  1. The problem that arises when some players do not contribute to the public good

  2. The problem that arises when some players contribute too much to the public good

  3. The problem that arises when the public good is not provided at all

  4. The problem that arises when the public good is provided at too high a cost


Correct Option: A
Explanation:

The free rider problem in a public goods game is the problem that arises when some players do not contribute to the public good. This can lead to a situation where the public good is not provided at all, or is provided at a lower level than is optimal.

What are some mechanisms that can be used to overcome the free rider problem in a public goods game?

  1. Coercion

  2. Persuasion

  3. Reputation

  4. All of the above


Correct Option: D
Explanation:

There are a number of mechanisms that can be used to overcome the free rider problem in a public goods game. These include coercion, persuasion, and reputation.

What is the voluntary provision of public goods?

  1. The provision of public goods by individuals or groups without being coerced to do so

  2. The provision of public goods by the government

  3. The provision of public goods by a private company

  4. The provision of public goods by a non-profit organization


Correct Option: A
Explanation:

The voluntary provision of public goods is the provision of public goods by individuals or groups without being coerced to do so. This can be done through donations, volunteering, or other forms of cooperation.

What are some examples of voluntary provision of public goods?

  1. Open source software

  2. Wikipedia

  3. Public parks

  4. All of the above


Correct Option: D
Explanation:

There are many examples of voluntary provision of public goods. Some common examples include open source software, Wikipedia, and public parks.

What are the benefits of voluntary provision of public goods?

  1. It can lead to a more efficient provision of public goods

  2. It can lead to a more equitable distribution of public goods

  3. It can lead to a more sustainable provision of public goods

  4. All of the above


Correct Option: D
Explanation:

There are a number of benefits to voluntary provision of public goods. These include a more efficient provision of public goods, a more equitable distribution of public goods, and a more sustainable provision of public goods.

What are the challenges of voluntary provision of public goods?

  1. The free rider problem

  2. The coordination problem

  3. The information problem

  4. All of the above


Correct Option: D
Explanation:

There are a number of challenges to voluntary provision of public goods. These include the free rider problem, the coordination problem, and the information problem.

What are some ways to overcome the challenges of voluntary provision of public goods?

  1. Government intervention

  2. Community-based initiatives

  3. Public-private partnerships

  4. All of the above


Correct Option: D
Explanation:

There are a number of ways to overcome the challenges of voluntary provision of public goods. These include government intervention, community-based initiatives, and public-private partnerships.

What is the role of cooperation in experimental economics?

  1. To study how people interact in strategic situations

  2. To study how people make decisions under uncertainty

  3. To study how people learn from experience

  4. All of the above


Correct Option: D
Explanation:

Cooperation is a key concept in experimental economics. It is used to study how people interact in strategic situations, how they make decisions under uncertainty, and how they learn from experience.

What are some of the main findings from experimental economics research on cooperation?

  1. People are more likely to cooperate when they are able to communicate with each other

  2. People are more likely to cooperate when they are able to see the benefits of cooperation

  3. People are more likely to cooperate when they are able to punish defectors

  4. All of the above


Correct Option: D
Explanation:

Experimental economics research on cooperation has found that people are more likely to cooperate when they are able to communicate with each other, when they are able to see the benefits of cooperation, and when they are able to punish defectors.

How can experimental economics research on cooperation be used to inform policy?

  1. By providing insights into how people make decisions in strategic situations

  2. By providing insights into how people learn from experience

  3. By providing insights into how to design institutions that promote cooperation

  4. All of the above


Correct Option: D
Explanation:

Experimental economics research on cooperation can be used to inform policy by providing insights into how people make decisions in strategic situations, how they learn from experience, and how to design institutions that promote cooperation.

- Hide questions