For a Commitment Strategy to Work

question 38

Multiple Choice

For a commitment strategy to work:

• A)the punishment must be so bad that it outweighs the incentive to defect.
• B)the punishment must occur immediately after the game is played.
• C)both players must agree to a punishment.
• D)no player may have a dominant strategy.

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Definitions:

Extremity Bias

A cognitive bias where individuals tend to remember and give disproportionate weight to the most extreme examples or experiences.

Law of Small Numbers

A cognitive bias that leads people to draw broad conclusions from small data sets or limited information.

Outgroup Heterogeneity Bias

The tendency to view members of an out-group as more diverse and individual than members of one's own in-group.

Ingroup Differentiation Bias

Ingroup differentiation bias is the tendency to perceive and highlight differences within one’s own group, emphasizing diversity and individuality among members.