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🎱game theory review

One-shot game

Written by the Fiveable Content Team • Last updated September 2025
Written by the Fiveable Content Team • Last updated September 2025

Definition

A one-shot game is a situation in game theory where players make their decisions simultaneously without knowledge of the other players' choices, and this interaction occurs only once. This format creates a unique strategic environment, as the players must weigh their actions based solely on their expectations of what others might do, leading to a variety of possible outcomes.

5 Must Know Facts For Your Next Test

  1. In a one-shot game, since there's no future interaction, players typically focus on maximizing their immediate payoff.
  2. One-shot games often lead to different strategic considerations than repeated games, where trust and cooperation can develop over time.
  3. An example of a one-shot game is the Prisoner's Dilemma, where two individuals must choose whether to cooperate or betray each other without knowing the other's choice.
  4. The lack of communication in one-shot games makes predicting opponents' moves more complex, often relying on assumptions about rationality.
  5. Understanding the concept of Nash Equilibrium is crucial in analyzing one-shot games, as it helps determine the best response strategies for players.

Review Questions

  • How does the lack of future interaction in a one-shot game influence players' strategies?
    • In a one-shot game, players are faced with the reality that their decisions will not impact future interactions. This encourages them to focus solely on maximizing their immediate payoffs rather than building relationships or trust with others. As a result, they may be more inclined to pursue dominant strategies or take risks since there is no concern about long-term consequences or retaliation.
  • Discuss the implications of Nash Equilibrium in one-shot games compared to repeated games.
    • Nash Equilibrium plays a pivotal role in one-shot games by identifying stable outcomes where no player has an incentive to unilaterally change their strategy. In contrast, repeated games allow for the development of trust and cooperation over time, which can lead to different equilibria or strategies. This difference means that while Nash Equilibrium may suggest rational behavior in one-shot interactions, it might not account for potential collaboration found in repeated scenarios.
  • Evaluate how understanding dominant strategies can affect decision-making in one-shot games.
    • Grasping the concept of dominant strategies significantly influences how players approach decision-making in one-shot games. When players identify a strategy that yields the best outcome regardless of what others do, they can streamline their decision process and focus on optimizing their results. This awareness allows players to navigate uncertainty effectively, leading to more informed choices and potentially altering the overall dynamics of the game as each participant reacts to perceived dominant strategies.