THE SOCIAL DILEMMA – SOME THEORETICAL ASPECTS
THE SOCIAL DILEMMA – SOME THEORETICAL ASPECTS

Author(s): Krasimira Naydenova
Subject(s): Economy, National Economy, Business Economy / Management, Micro-Economics, Public Finances, ICT Information and Communications Technologies
Published by: Икономически университет - Варна
Keywords: social dilemma; game theory; financial crisis
Summary/Abstract: Modern economic reality is complex and requires decisions that weigh individual, group and public interests. The behavior of societies, people, corporations, governments, central banks and groups in such situations is an attempt at rationality. The search for an optimal solution in the context of the economic policy of governments and central banks requires dealing with social phenomena that are usually not included in the models. The interests of all are located in different corners of the common puzzle - all will gain more if cooperate, but they fail to do so because of their divergent and subjective, conflicting and short-term interests. An applicable option for solving dilemmas turns out to be game theory. In combination with the theory of rational choice and expected utility, they provide a common toolkit.

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