Which Theory Is the Most Focused on Individual Decision-Making

question 47

Multiple Choice

Which theory is the most focused on individual decision-making?

• A) Exchange Theory
• B) Rational Choice Theory
• C) Network Theory
• D) Positivism

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Definitions:

Dominant Strategy

A strategy in game theory that is the best action for a player irrespective of what the opponent does.

Tit-For-Tat

A strategy in game theory where a participant replicates the opponent's previous action, as in a retaliatory or cooperative manner.

Repeated Game

A game-theory concept involving the same game played multiple times, where outcomes can be affected by previous games.

Cournot Model

An economic model used to describe an industry structure in which companies compete on the amount of output they will produce, which they decide upon independently and at the same time.