Blackadder and Baldrick are rational. self-interested criminals imprisoned in separate cells in a dark medieval dungeon. They face the prisoner's dilemma displayed in the matrix.

Assume that Black adder is willing to pay $1,000 for each year by which he can reduce his sentence below 20 years. A corrupt jailer tells Black adder that before he decides whether to confess or deny the crime, she can tell him Baldrick's decision. How much is this information worth to Blackadder?

Transcribed Image Text:

Confess Baldrick Deny Confess 5 years for each Blackadder 20 years for Baldrick 0 for Blackadder Deny 0 for Baldrick 20 years for Blackadder I year for each Confess Baldrick Deny Confess 5 years for each Blackadder 20 years for Baldrick 0 for Blackadder Deny 0 for Baldrick 20 years for Blackadder I year for each

Answer rating: 100% (QA)

Game theory is study of strategic and rational decision mak... View the full answer