According to the passage, which of the following options about the application of game theory to a conflict-of-interest situation is true?
Explanation:
All the options are given in the first paragraph itself. “...the rank order of preferences for the outcomes is different for different players. Thus the 'interests' of the players are generally in conflict. Whether these interests are diametrically opposed or only partially opposed depends on the type of game.” As a result, option 4 is a straightforward choice. Hence, the correct answer is option 4.