Cooperation vs. Defection
In game theory, cooperation involves players working together for mutual benefit, while defection involves acting in one�s self-interest, often at the expense of others.
Implications
A concept from game theory where players must choose between cooperating for mutual benefit or defecting for individual gain, often used to analyze strategic decision-making in competitive or collaborative environments.
Example
Example: In a pricing strategy, two competing firms face a cooperation vs. defection dilemma: whether to keep prices stable (cooperate) or undercut each other (defect) to gain market share.
Related Terms
Different from zero-sum games, where one party's gain is another's loss, cooperation vs. defection scenarios involve choices that can lead to mutual benefit or mutual harm.
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