Why are some interactions considered to be strategic interactions?
A)In strategic interactions,an actor has to prepare an unconditional strategy.
B)In strategic interactions,different actors have different interests.
C)In strategic interactions,actors have a set of preferences that change,depending on what actions other actors have taken.
D)In strategic interactions,actors are unlikely to consider the future consequences of their choices.
E)In strategic interactions,each actor's plan of action depends on what the other actors are expected to do.

Question

Quizplus · Accepted Answer

Strategic interactions are those where each actor's plan of action depends on what the other actors are expected to do. This is also known as game theory, where actors try to anticipate the decisions of others and make choices accordingly to maximize their own outcome. Hence, option (E) is the correct answer. Option (A) is incorrect because strategies are conditional, not unconditional. Option (B) is partially correct, but not the defining feature of strategic interactions. Option (C) is incorrect because preferences do not change, but rather the utility of a particular action changes based on what the other actors choose. Option (D) is also incorrect because rational actors do consider the future consequences of their choices.

Why Are Some Interactions Considered to Be Strategic Interactions