15 Game Theory

4 prisonersdilemmagame

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Unformatted text preview: All players know the structure of the game, know that their rivals know it and their rivals know that they know it. 4 Prisoner’s Dilemma Game There at 2 players: Player 1, and Player 2. ► Each has 2 possible strategies: Confess (C) or Do Not Confess (DNC). ► Players only play the games once. ► Payoffs are years in jail, so they are expressed as negative numbers. Both players want the least amount of years in jail they can have. ► Player 2 Player 1 C C DNC DNC C C DNC DNC ­6 , ­6 0 , ­9 ­9 , 0 ­1 , ­1 5 Prisoner’s Dilemma Game ► How do we “solve” this game (predict which set of strategies will be played)? ► 1. Look for Strictly Dominant Strategies and Strictly Dominated Strategies Str...
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This document was uploaded on 03/23/2014.

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