Suppose There Are Two Small Island Countries: Avarice, Which Is

question 32

Multiple Choice

Suppose there are two small island countries: Avarice, which is populated by people who are completely self-interested, and Altruism, which is populated by people who have adopted social norms of generosity and cooperation. Suppose residents of each island often play prisoner's dilemma games, always matched with a person from the same island, but not a person who they know or will play with again. If the same number of games is played on each island, you would expect:

• A)the residents of Avarice to have higher average payoffs than the residents of Altruism.
• B)players on both islands to quickly converge to playing their dominant strategies.
• C)the residents of Altruism to have higher average payoffs than the residents of Avarice.
• D)players on both islands to quickly converge to playing their dominated strategies.

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Definitions:

Sample Averages

The mean value calculated from a sample set of data, representing the central tendency or typical value of that sample.

Mode

Mode refers to the most frequently occurring value in a set of data.

Regression Toward the Mean

A statistical phenomenon wherein extreme scores on one occasion tend to be closer to the average on subsequent testing.

Illusory Correlation

A cognitive bias where people falsely perceive an association between two unrelated events or variables.