In a Small Isolated Town,there Are Two Types of People,saints

question 22

Multiple Choice

In a small isolated town,there are two types of people,saints and crooks.In business dealings between any two residents of this town,the payoffs are below. What percentage of this town's residents would be saints in an evolutionary stable strategy?

• A) 100%
• B) 33.33%
• C) 83.33%
• D) 28.51%
• E) 0%

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Definitions:

Nash Equilibrium

A concept in game theory where no player can benefit by changing strategies if other players keep their strategies unchanged.

Payoff Matrix

A table that shows the potential outcomes of different decisions in a strategic situation, used in game theory to analyze choices and consequences.

Zero-Sum Game

A situation in game theory where one participant's gain or loss is exactly balanced by the losses or gains of the other participants.

Negative-Sum Game

In game theory, a game in which the gains (+) and losses (−) add up to some amount less than zero; one party’s losses exceed the other party’s gains. A strategic interaction (game) between two or more parties (players) in which the winners’ gains are less than the losers’ losses so that the gains and losses sum to a negative number.