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Results of search for Prisoner's Dilemma follow:
Prisoner's Dilemma:
A classic game with two players. Imagine that the two players are
criminals being interviewed separately by police. If either gives information
to the police, the other will get a long sentence. Either player can
Cooperate (with the other player) or Defect (by giving information to the
police). Here is an example payoff matrix for a Prisoner's Dilemma game:
| |
Player Two |
| C | D |
| Player One |
C | 3,3 |
0,4 |
| D | 4,0 |
1,1 |
(D,D) is the Nash equilibrium, but (C,C) is the Pareto
optimum. That difference has been discussed extensively
for various games in the research literature. Analogies to the prisoner's
dilemma or some other game can support an argument about why in the real world
some Pareto optima are observed not to be achieved.
If this same game is repeated more than once with a high enough discount
factor, there exist Nash equilibria in which (C,C) is a possible outcome of
the early stages.
Source: Varian, 1992, Ch 15
Contexts: game theory
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