Question: Consider a prisoners' dilemma type game: two players simultaneously choose to Cooperate or Betray. If they both Cooperate, each 3 points. If they both Betray,

Consider a prisoners' dilemma type game: two players simultaneously choose to Cooperate or Betray. If they both Cooperate, each 3 points. If they both Betray, each gets 1 point. If one Cooperates while the other Betrays, the Cooperator gets O points and the Betrayer gets 4 points. The Nash equilibrium of this game is for both players to Betray. Would we call this outcome inefficient? If so, why? Yes, because total surplus would be increased if we switched from "Both Betray" to "Both Cooperate" ONo, "Both Betray" is efficient. Yes, because it's the Nash equilibrium O Yes, because each player has an incentive to deviate

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