Behavioral Game Theory Lecture

These flashcards cover key concepts and terms from the Behavioral Game Theory lecture, highlighting the intersection of psychology and economics in strategic decision-making.

Game Theory

A mathematical study of strategic decision-making among competitive entities.

Behavioral Game Theory

An extension of game theory that incorporates psychological elements affecting decision-making.

Nash Equilibrium

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

Bickering Auction

An auction format where the highest bidder wins but pays the second highest bid.

Self-Interest

The motive to act in one's own benefit, assumed in traditional economics.

Altruism

The selfless concern for the well-being of others, contrary to pure self-interest.

Ultimatum Game

A game where one player proposes a division of a resource and the other accepts or rejects the proposal.

Reciprocity

A social norm of responding to a positive action with another positive action, rewarding kind actions.

Trust Game

A game where one player decides how much money to give to another player, who must then decide whether to return part of it.

Schadenfreude

Pleasure derived from someone else's misfortune, often linked to negative feelings about others.