What Is the Basic Assumption of Game Theory

question 84

Multiple Choice

What is the basic assumption of game theory?

• A) people rationally act to maximize rewards and minimize costs
• B) people attempt to manipulate each other to gain in conflict
• C) cooperation is always the most rational response
• D) people play 'games' with each other
• E) people act emotionally rather than rationally to maximize their rewards

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Definitions:

Coordinating Mechanism

Techniques and processes used to align and manage tasks, resources, and people within an organization.

Organizational Structures

The system of tasks, workflows, reporting relationships, and communication channels that link the diverse parts of an organization.

Span of Control

describes the number of subordinates a manager or supervisor can directly control or oversee effectively.

Traditional Management Theorists

Scholars and practitioners from the past who developed foundational principles and practices of management and organizational structure, focusing on efficiency and hierarchical control.