Poli 212 midterm study guide - pt 2: key terms

UNC poli 212

Prisoner’s Dilemma - Definition

A situation in game theory where two individuals acting in their own self-interest do not produce the optimal outcome.

Prisoner’s Dilemma - Significance

Highlights the conflict between individual rationality and collective benefit; foundational in understanding cooperation and trust in economics and politics.

Prisoner’s Dilemma - Example

Two companies could either keep prices high (cooperate) or undercut each other (defect). If both undercut, profits fall. If both cooperate, profits are higher. But fear of being undercut leads both to defect.

Nash Equilibrium - Definition

A situation in a game where no player can benefit by changing their strategy while the other players keep theirs unchanged.

Nash Equilibrium - Significance

Central to game theory; helps predict outcomes in strategic interactions.

Nash Equilibrium - Example

In the Prisoner’s Dilemma, both prisoners choosing to betray each other is a Nash equilibrium‚ even though mutual cooperation would yield a better outcome.

Non-rival Good - Definition

A good where one person’s use does not reduce its availability to others.

Non-rival Good - Significance

Important in public economics; non-rival goods often justify public provision.

Non-rival Good - Example

A broadcast television signal‚ one person watching doesn’t prevent others from watching.

Non-excludable Good - Definition

A good that people cannot be prevented from using, regardless of whether they pay for it.

Non-excludable Good - Significance

Leads to the free-rider problem, where individuals benefit without contributing.

Non-excludable Good - Example

National defense‚ everyone is protected, regardless of tax contributions.

Free-riding - Definition

When individuals benefit from resources or services without paying for them.

Free-riding - Significance

Undermines the provision of public goods; a key challenge in collective action.

Free-riding - Example

People who don’t pay taxes but still benefit from public infrastructure.

Community - Definition

A group of people with shared interests, values, or geographic location.

Community - Significance

Central to social cohesion, identity, and governance.

Community - Example

A neighborhood association working together to maintain a local park.

Economies of Scale - Definition

Cost advantages that enterprises obtain due to size, output, or scale of operation.

Economies of Scale - Significance

Explains why larger organizations can often produce goods/services more cheaply.

Economies of Scale - Example

A large factory producing cars at a lower cost per unit than a small workshop.

Parochial Altruism - Definition

The tendency to favor and sacrifice for one’s own group, even at a cost to oneself.

Parochial Altruism - Significance

Explains group loyalty and conflict; relevant in evolutionary biology and sociology.

Parochial Altruism - Example

A soldier risking their life to protect their country or comrades.

General-purpose (Type 1) Governance - Definition

Governance structures that handle a wide range of functions and responsibilities.

General-purpose (Type 1) Governance - Significance

Provides broad oversight and coordination across multiple policy areas.

General-purpose (Type 1) Governance - Example

A national government or a city council. ; the EU, african union, etc

Task-specific (Type 2) Governance - Definition

Governance bodies focused on a specific function or issue.

Task-specific (Type 2) Governance - Significance

Allows for specialized, efficient management of particular tasks.

Task-specific (Type 2) Governance - Example

A water management authority or a school board.; the WHO, world bank, etc

Self-rule - Definition

The ability of a community or group to govern itself independently.

Self-rule - Significance

Reflects autonomy and local control in governance.

Self-rule - Example

A Native American tribe managing its own affairs on a reservation.

Shared-rule - Definition

Governance where multiple levels (e.g., local and national) share authority and decision-making.

Shared-rule - Significance

Promotes cooperation and coordination across jurisdictions.

Shared-rule - Example

Federal systems like the U.S., where states and the federal government share power.

Multi-level Governance - Definition

A system where decision-making is distributed across multiple interconnected levels‚ local, regional, national, and international.

Multi-level Governance - Significance

Reflects the complexity of modern governance in a globalized world.

Multi-level Governance - Example

The European Union, where policies are shaped by local, national, and EU-level institutions.

Unanimity Voting - Definition

A decision-making rule where all participants must agree for a decision to be adopted.

Unanimity Voting - Significance

Ensures consensus but can lead to gridlock.

Unanimity Voting - Example

Amendments to the EU treaties require unanimous approval from all member states.

Qualified Majority Voting (QMV) - Definition

A voting system where decisions are made if a specified threshold of votes is reached, not necessarily unanimity.

Qualified Majority Voting (QMV) - Significance

Balances efficiency and representation in collective decision-making.

Qualified Majority Voting (QMV) - Example

The EU Council uses QMV for many decisions, requiring a majority of countries representing a majority of the EU population.

Common Pool Resource - Definition

A resource that is rivalrous (use by one reduces availability for others) but non-excludable.

Common Pool Resource - Significance

Prone to overuse and depletion without proper management.

Common Pool Resource - Example

Fisheries‚ anyone can fish, but overfishing reduces the stock for everyone.

Public Good - Definition

A good that is both non-rival and non-excludable.

Public Good - Significance

Often underprovided by markets, requiring government or collective provision.

Public Good - Example

Clean air or national defense.

Tragedy of the Commons - Definition

A situation where individuals overuse a shared resource, leading to its depletion.

Tragedy of the Commons - Significance

Illustrates the need for regulation or collective management of common resources.

Tragedy of the Commons - Example

Overgrazing on public land by multiple herders.

Assimilation - Definition

The process by which individuals or groups adopt the culture of another group, often losing aspects of their original culture.

Assimilation - Significance

Central to debates on immigration, identity, and multiculturalism.

Assimilation - Example

Immigrants adopting the language and customs of their new country while abandoning their native traditions.

Accommodation - Definition

Adjusting or adapting to include diverse cultural or social groups without requiring them to abandon their identity.

Accommodation - Significance

Promotes multiculturalism and social inclusion.

Accommodation - Example

Schools offering bilingual education to support students from different linguistic backgrounds.