Consider the following game, called the Prisoner's Dilemma. The game goes as follows: We assume that the

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Consider the following game, called the Prisoner's Dilemma. The game goes as follows: We assume that the police have arrested two suspects for a crime. Two prisoners have the option to confess or not to confess to a crime they committed. The prosecutor has only enough evidence to convict both criminals of a minor charge and is relying on obtaining a confession. The minor offense carries a maximum sentence of only 1 year whereas the crime committed nets a maximum of 20 years. The prisoners are questioned in different interrogation rooms without the ability to communicate with one another. They are told that if one of them confesses while the other remains silent, the one confessing individual will go free, and the other will be arrested and charged with the crime for the 20-year sentence. If both prisoners confess, then the reduced sentence will be only 5 years each. The game table is as follows:

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a. Identify any dominant strategies for Prisoner 1.
b. Identify any dominant strategies for Prisoner 2.
c. Using the movement diagram, find the Nash equilibrium.
d. Do you think that the Nash equilibrium is the best solution for both prisoners?

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Related Book For  answer-question

A First Course In Mathematical Modeling

ISBN: 9781285050904

5th Edition

Authors: Frank R. Giordano, William P. Fox, Steven B. Horton

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