In the context of Prisoner’s dilemma, which one of the following is correct ?
rational choices can lead to bad outcomes
The prisoner's dilemma is a classic game in which two players, each acting in their own rational self-interest, reach an outcome that is worse for both than if they had cooperated.
Because each prisoner's dominant strategy is to defect (confess), both defect and receive a worse result than the cooperative outcome they could have achieved. This shows that individually rational choices can lead to a collectively bad outcome.
It does not show that rational choices lead to good outcomes, nor that cooperation leads to sub-optimal results - in fact cooperation would have given the better result. The lesson is precisely the tension between individual rationality and collective welfare.
Hence it demonstrates that rational choices can lead to bad outcomes.
Similar Questions
In the context of Prisoner's dilemma, which one of the following is correct?
Which of the following techniques of enhancing strategic thinking is most similar to Devil’s Advocacy ?
A phenomenon in which the norm for consensus overrides that realistic appraisal of alternative course of action is:
In the context of distinguishing between forecasting and prediction, which one of the following statements is false ?
The decision-criterion in which a decision-maker selects an alternative that maximizes \(H\) (criterion of realism) \(= [a \times (\text{maximum in column})] + [(1 - a) \times (\text{minimum in column})]\) is called
A new approach “Learning Model” which is helpful to strengthen the decision making process was developed by :
Important Questions from Decision Making
Which of the following are necessary conditions for applying Simeon Denis Poisson distribution in the field of managerial decision making?
A. Each occurrence of an event is independent of the occurrence of the other event
B. The probability of an occurrence is the same for any two intervals of equal length
C. Poisson distribution describes continuous occurrences over a specific time interval
D. In each interval, occurrences can range from zero to infinity
Choose the correct answer from the options given below:
Which of the following common difficulties are faced in making decisions and implementing?
(A) Non-actionable information
(B) Unsupporting environment
(C) Easy acceptance by subordinates
(D) Ineffective communication
(E) Incorrect timing
Choose the correct answer from the options given below
The major components of Nicosia Model of consumer decision-making are:
A. The consumer's attitude based on firm's message exposure
B. Perceptual and learning constructs
C. Feedback in the form of purchase experience
D. Extensive problem solving by consumer
E. Consumer's product search and evaluation
Choose the correct answer from the options given below:
Match List - I with List - II.
List - I
Decision Rule
List - II
Rationale for applying the decision Rule to Down App.
(A)
Conjunctive
I)
"I bought the Smartphone App with the highest over all railing".
(B)
Disjunctive
(II)
"I down loaded the Smartphone App that had the most downloads".
(C)
Affect Referred
(III)
"I selected the Smart Phone App that had no bad features".
(D)
Majority vote
(IV)
"I picked the Smart Phone App that excelled in at least one attribute ".
Choose the correct answer from the options given below:
- What are the characteristics of programmed decisions ?
A. Problems are unique and novel
B. Solutions are based on rules and established procedures
C. Made by top management only
D. Problems are routine and repetitive
E. Conditions in which they occur are highly certain
Choose the most appropriate answer from the options given below :
