Multiple Choice Question

QUESTION 17 The prisoner's dilemma is one of the most important models in all of social science: Most games of trust can be thought of as some kind of prisoner's dilemma. Here's the classic game: Two men rob a bank and are quickly arrested. The police do not have an airtight case; they havejust enough evidence to put each man in prison for one year, a slap on the wrist for a serious crime. Ifthe police had more evidence, they could put the men away for longer. To get more evidence, they put the men in separate interrogation rooms and offer each man the same deal: lfyou testify against your accomplice, we will drop all the charges against you [and convict the other guy of the full penalty of10 years of prison time). Of course, if both prisoners take the deal the police will have enough evidence to put both prisoners away and they will each get 6 years. And, as noted above, if neither testies both will getjust one year of prison time. What's the Nash Equilibrium? In each cell in the table below, the first number is the number ofyears Butch will spend in prison, and the second is the number that Sundance will spend in prison given the strategies chosen by Butch and Sundance. lfyears in prison are minuses, then we can write it like this: Sundance Keep quiet Testify Keep quiet Testify Butch 0 keep quiet; keep quiet O testify; testify O testify; keep quiet 0 keep quiet; testify