Prisoner's_Dilemma - Prisoner's Dilemma Public Policy and Business Purdue University Spring 2007 Bonnie and Clyde are arrested In the car they were

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Prisoner's Dilemma Public Policy and Business – Purdue University – Spring 2007 Bonnie and Clyde are arrested. In the car they were driving at the time of their arrest the police found several automatic weapons ("machine guns"). The District Attorney, convinced that Bonnie and Clyde have been robbing banks in the area, but lacking evidence to prove so, approaches each separately and offers the following deal: "No matter what happens, I can convict you of possession of illegal weapons, a charge that calls for spending one year in prison. You were caught "red-handed" with a cache of machine guns. Implicate your partner in the bank robberies, and I'll ask that your sentence be reduced on this possession charge. If you rat on your partner, and he/ she refuses to implicate you, you'll get an easy 3 months in the county jail, and he/she will get 10 years in prison. If both of you rat against the other, you will share the time on the bank robbery charges. Each of you will get 5 years in prison." The matrix of payoffs - depending upon Bonnie's as well as Clyde's decision -
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This note was uploaded on 03/18/2011 for the course ECON 415 taught by Professor Holland during the Spring '09 term at Purdue University-West Lafayette.

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Prisoner's_Dilemma - Prisoner's Dilemma Public Policy and Business Purdue University Spring 2007 Bonnie and Clyde are arrested In the car they were

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