Which of the following is true? a. The tragedy of the Commons, arms race, 1997 E

Question

Which of the following is true?
a. The tragedy of the Commons, arms race, 1997 East Asian Economic Crisis are examples of Prisoner Dilemma Games

b. The advertising game, tariff wars between nations, and the overproduction of agricultural goods are PD Games

c. Trusts in the 19th Century, Cartels, Study Groups, Alliances in the game show “Survivor”, environmental agreements, competing sports teams and common market formed by European Nations in 1958 are coalition games

d. All of the above

e. A and B

Please explain why the answer you chose is correct.

Explanation / Answer

Which of the following is true?

a. The tragedy of the Commons, arms race, 1997 East Asian Economic Crisis are examples of Prisoner Dilemma Games
b. The advertising game, tariff wars between nations, and the overproduction of agricultural goods are PD Games
c. Trusts in the 19th Century, Cartels, Study Groups, Alliances in the game show “Survivor”, environmental agreements, competing sports teams and common market formed by European Nations in 1958 are coalition games
d. All of the above
e. A and B

The answer is "A AND B" (E). Let me explain why:

a. The tragedy of the Commons, arms race, 1997 East Asian Economic Crisis are examples of Prisoner Dilemma Games.

b. The advertising game, tariff wars between nations, and the overproduction of agricultural goods are PD Games

Prisoner's Dilemma games are canonical example of a game, analyzed in game theory that shows why two individuals might not cooperate, even if it appears that cooperation could benefit them. To this extent, all of the examples in (a) and (b) are Prisoner's Dilemma games because, in each situation, there is a very high probability of not cooperating even though cooperation benefits both participants.

In the tragedy of the commons, cooperative *shared* use of a common space - say, a library book - ultimately benefits everyone. Still, there are those who choose to steal library books or highlight them to their own benefit.

The same sort of principle holds true for advertising games (if both Coca Cola & Pepsi didn't spend millions on advertising, they'd be equally well-off as when they battle it out for excessive advertising space), tariffs (both nations would be better off without tariffs), and overproduction of agricultural goods (producers, if they would cooperate and share their information with one another, would be better off not over-producing so that they can charge a higher price - but they don't cooperate, and are thus forced to sell their apples for, say, $0.50 a pound instead of $5.00 a pound.

c. Trusts in the 19th Century, Cartels, Study Groups, Alliances in the game show “Survivor”, environmental agreements, competing sports teams and common market formed by European Nations in 1958 are coalition games

Coalition games are "games" to the extent that members "team up" to perform better than those they "compete against." For example, members of a study group study together, eachobtaining the study information from each of their participants. Because of this, the study group has "colluded" its knowledge and will outperform students who did not study in a group. However, the students are NOT COMPETING AS A GROUP, BUT AS INDIVIDUALS. Similarly, sports team DO NOT GAIN AN ADVANTAGE from "teaming up" - sports teams are DESIGNED to be teams, and everyone competes as teams. Again, these aren't coalition games so much as they are merely coalitions.

I hope that you found this answer useful towards your studies. It took a considerable amount of thought, time, and effort to compose, and and I'd sincerely appreciate a lifesaver rating! It would really make my day! :)

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