If a utility function is concave, a decision maker will ________.
A) always choose a risky gamble
B) always choose a sure thing
C) always make a decision in uncertainty or ignorance
D) choose a prospect whose expected value is identical to a sure thing
You are facing a prisoner’s dilemma and you realize that the spiral of defection is
escalating. In such a situation which of the following strategies can be implemented by
you?
A) See your actions as the response to the counterparty’s behavior.
B) Rebuild trust incrementally by taking a series of small steps.
C) Ensure some time delay between your decision and your counterparty’s decision.
D) Offer large concessions in the hope that the other party will cooperate.
In 1981 Robert Axelrod, a leading game theorist, invited members of the scientific
community to submit a strategy to play in a prisoner’s dilemma tournament. The
winning strategy of the tournament was called ________.
A) graduated reduction in tension strategy
B) backward induction
C) dominance strategy
D) tit-for-tat
Which of the following statements best describes the law of large numbers?
A) Large numbers of people should be involved if a gamble has to be successful.
B) Risk involved in a gamble is low when the money invested in it is large.
C) The mean return will get closer and closer to its expected value the more times a
gamble is repeated.
D) Risk involved in a gamble is low when the prize is large.
What is the drawback of deterrence-based trust systems?
A) They do not promote cohesion.
B) Both parties run the risk of exploitation.
C) They are expensive to maintain.
D) They cannot provide long-term results.
The most common procedure used to aggregate preferences of team members is
________.
A) circular logrolling
B) concurrent controlling
C) reciprocal logrolling
D) majority rule
The collectivist concerns for the welfare of a group is ________.
A) social striving
B) social gaining
C) social loafing
D) social thriving
Which of the following terms is most closely associated with the expected utility
theory?
A) decision making under uncertainty
B) riskless negotiation
C) collective decision making
D) rational behavior
________ refers to a negotiator’s belief in his or her ability to claim resources
effectively.
A) Primacy effect
B) Distributive self-efficacy
C) Self-serving bias
D) False consensus effect
The ________ model determines the overall payoff a player can expect on the basis of
his or her ability to change a losing coalition into a winning coalition.
A) Raiffa
B) Black-Scholes
C) Bayesian
D) Shapley
Choose the pair of answers that best completes the following analogy:
Mediators – ________; Arbitrators – ________.
A) informal; formal
B) intergroup; interpersonal
C) formulators; facilitators
D) process-oriented; content-oriented