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Prisoner 1 prisoner 2 confess dont confess confess 4

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Unformatted text preview: e outcome of the game be? 14 Game Theory: Lecture 2 Dominant Strategies Dominant Strategies Example: Prisoner’s Dilemma. Two people arrested for a crime, placed in separate rooms, and the authorities are trying to extract a confession. prisoner 1 / prisoner 2 Confess Don’t confess Confess (−4, −4) (−1, −5) Don’t confess (−5, −1) (−2, −2) What will the outcome of this game be? Regardless of what the other player does, playing “Confess” is better for each player. The action “Confess” strictly dominates the action “Don’t confess” Prisoner’s dilemma paradigmatic example of a self-interested, rational behavior not leading to jointly (socially) optimal result. 15 Game Theory: Lecture 2 Dominant Strategies Prisoner’s Dilemma and ISP Routing Game Consider two Internet service providers that need to send traffic to each other Assume that the unit cost along a link (edge) is 1 ISP1: s1 t1 ISP2: s2 t2 s1 t2 DC C Peering points t1 s2 This situation can be modeled by the “Prisoner’s Dilemma” payo...
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