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Table 10-4
-Refer to Table 10-4. Taking into account private and external costs, total surplus in the market equilibrium amounts to
Robert Axelrod
A political scientist known for his work on the theory of cooperation and competition, including the development of the iterated prisoner's dilemma model.
Tit-for-tat
A strategy in game theory where a player responds to an opponent's action with equivalent action, promoting cooperation by rewarding cooperation and punishing defection.
Prisoner's Dilemma
A scenario in game theory that illustrates why individuals might not cooperate, even when it seems that doing so would be in their collective best interest.
Zero-sum Game
A situation in competitive theory where one party's gain is exactly balanced by the losses of others. In a zero-sum game, the total benefit to all players in the game, for every combination of strategies, always adds up to zero.
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