## What does tip for tap mean?

## What does tip for tap mean?

an equivalent given in return

: an equivalent given in return (as for an injury) : retaliation in kind.

## What is meant by Nash equilibrium?

Nash Equilibrium represents an action profile for all players in a game and is used to predict the outcome of their decision-making interaction. It models a steady state (i.e., a combination of strategies of all players) in which no player can benefit by unilaterally changing its strategy.

**What is the difference between chicken game and prisoner’s dilemma?**

The essential difference between these two games is that in the prisoner’s dilemma, the Cooperate strategy is dominated, whereas in Chicken the equivalent move is not dominated since the outcome payoffs when the opponent plays the more escalated move (Straight in place of Defect) are reversed.

### What is the difference between Pareto dominated and Pareto optimal?

A situation is called Pareto dominated if there exists a possible Pareto improvement. A situation is called Pareto optimal or Pareto efficient if no change could lead to improved satisfaction for some agent without some other agent losing or if there is no scope for further Pareto improvement.

### How are the three concepts of Pareto related to each other?

The following three concepts are closely related: Given an initial situation, a Pareto improvement is a new situation where some agents will gain, and no agents will lose. A situation is called Pareto dominated if there exists a possible Pareto improvement.

**What is the theory of Pareto equilibrium?**

The theory suggests that Pareto improvements will keep enhancing value to an economy until it achieves a Pareto equilibrium, where no more Pareto improvements can be made. Conversely, when an economy is at Pareto efficiency, any change to the allocation of resources will make at least one individual worse off.

## What is an example of a Pareto inefficient distribution of the pie?

An example of a Pareto inefficient distribution of the pie would be allocation of a quarter of the pie to each of the three, with the remainder discarded. : 18