Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A population of hawks and doves competing for a resource where only hawks can see the resource's value.
B
A market where all players have perfect information about each other’s strategies and payoffs.
C
A group of competitors adjusting their strategies based solely on visible past actions of others.
D
A scenario where all players can freely communicate their intentions before making a decision.
Understanding the Answer
Let's break down why this is correct
Answer
An evolutionary stable strategy (ESS) is a strategy that, if adopted by a population, cannot be invaded by any alternative strategy. In a scenario with information asymmetry, imagine two types of animals: aggressive and peaceful. The aggressive animals may seem stronger and more likely to win fights, while peaceful animals may avoid conflict and conserve energy. If the aggressive type dominates, it can deter peaceful animals from trying to compete, but if they become too common, peaceful types can thrive by avoiding confrontation altogether. For example, if the peaceful animals can recognize threats and only engage when they have an advantage, they can survive and reproduce, illustrating how strategies can evolve based on the information available to different types in a population.
Detailed Explanation
In this scenario, only hawks can see the resource's value. Other options are incorrect because This option suggests everyone knows everything; This choice implies players only react to what they see.
Key Concepts
evolutionary stable strategy
information asymmetry.
Topic
Game Theory Strategies
Difficulty
medium level question
Cognitive Level
understand
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