The study of behaviour in situations of interdependence is known as:
A) dominant strategies.
B) game theory.
C) the Nash equilibrium.
D) tacit collusion.

Question

Quizplus · Accepted Answer

The study of behaviour in situations of interdependence is known as game theory. Game theory models how individuals and organizations interact and make decisions when their outcomes depend on the actions of others. It is a framework for understanding strategic behaviour and can be used in various fields such as economics, political science, and psychology. Choice A (dominant strategies) refers to a strategy that is the best choice for a player regardless of the other player's strategy. Choice C (Nash equilibrium) is a solution concept in game theory where each player's strategy is the best response to the other player's strategy. Choice D (tacit collusion) refers to an understanding between firms to limit competition without explicit communication or agreement.

The Study of Behaviour in Situations of Interdependence Is Known