📚 Learning Guide
Game Theory
medium

In the context of game theory, which of the following best describes the primary difference between non-zero-sum games and cooperative games?

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Choose the Best Answer

A

Non-zero-sum games involve competition, while cooperative games involve players working together.

B

Non-zero-sum games can have outcomes where all players benefit, whereas cooperative games always result in a loss for at least one player.

C

Non-zero-sum games require binding agreements, while cooperative games do not.

D

Non-zero-sum games are strictly theoretical, while cooperative games are practical applications in real-life scenarios.

Understanding the Answer

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Answer

In game theory, the primary difference between non-zero-sum games and cooperative games lies in how players can achieve their goals. In non-zero-sum games, the total gains and losses among players can vary, meaning one player can win without another losing the same amount. For example, in a negotiation scenario, both players can come to an agreement that benefits them both, increasing their overall satisfaction. On the other hand, cooperative games focus on how players can work together to achieve better outcomes, often forming coalitions to maximize their combined benefits. This means that in cooperative games, players collaborate to find solutions that are more beneficial for everyone involved, rather than just competing against each other.

Detailed Explanation

Non-zero-sum games allow for different outcomes where players can both win or lose. Other options are incorrect because This answer suggests that cooperative games always mean someone loses; This option implies that non-zero-sum games need strict rules.

Key Concepts

non-zero-sum games
cooperative games
Topic

Game Theory

Difficulty

medium level question

Cognitive Level

understand

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