The prisoners dilemma the four outcomes are possible

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Unformatted text preview: The Prisoners’ Dilemma The Four outcomes are possible: • Both confess. (3 years each) • Both deny. (2 years each) • Art confesses and Bob denies. (1 year for Art, 10 years for Bob) • Bob confesses and Art denies. (1 year for Bob, 10 years for Art) Prisoners’ Dilemma Payoff Matrix Prisoners Art’s strategies Confess Deny 3 years 10 years Confess Bob’s strategies 3 years 1 year 1 year 2 years Deny 10 years 2 years The Prisoners’ Dilemma The In a Nash equilibrium, each player takes their best possible action given the action of their opponent. In equilibrium, both will confess. Each thinks: • If I confess, but my accomplice does not, my sentence will only be 1 year. This is better for me than 2 years. • If my accomplice confesses, but I do not, my sent...
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This document was uploaded on 03/13/2014.

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