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SOCIAL INTERACTIONS
OUTLINE
A. Introduction
B. Game Theory: Key concepts
C. Resolving social dilemmas
A. Introduction
The Context for This Unit
• Previous models of choice did not depend on others’
decisions. (Unit 3)
• Individuals motivated by self-interest can produce
outcomes that are beneficial for society e.g.
entrepreneurship, innovation. (Unit 1)
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This Unit
Social dilemmas occur when people do not fully account
for the effects of their actions on others.