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Glossary

Terms7 shown

Prisoner's DilemmaA game theory scenario in which individually rational choices may collectively produce a worse outcome than cooperation.
Hindsight RationalizationReconstructing an explanation after an event based on its known outcome, making a previously surprising event seem predictable.
Law of Cause and EffectDifferences between supply and demand in the market undergo a preparation process and, through specific events, form corresponding trend outcomes.
Exogenous variableA variable determined outside the model that can affect model outcomes but is not affected by the model’s internal dynamics.
Pig-butchering scamA scam in which perpetrators first build trust with victims over an extended period, then induce them to repeatedly transfer funds to a fraudulent investment platform.
Positive Black SwanAn event with an extreme positive outcome, such as a disruptive technological breakthrough, that standard forecasting methods are also likely to underestimate.
Prediction MarketAn application where participants trade or bet on outcomes of future events and where settlement rules may become targets for design-flaw exploits.

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Definition

Prisoner's Dilemma

A game theory scenario in which individually rational choices may collectively produce a worse outcome than cooperation.

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