prisoner's dilemma


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Prisoner's Dilemma

A classic problem in game theory. In the problem, two suspects are arrested and questioned separately by police. If one accuses the other while the other remains silent, the accuser will go free and the silent party will go to jail for 10 years. If each accuses the other, both go to prison for five years. If both remain silent, they only go to jail for one year. According to the dilemma, the rational response for each of the prisoners is to accuse the other (maximizing the possibility each will go free), even though this produces an irrational result (that both go to jail for five years).

The prisoner's dilemma is used to explain a variety of economic and political phenomena when all parties involved are self-interested, rational and have imperfect information. For example, two companies may compete for a promising employee. They offer increasingly attractive salaries. If one company gives up, the other company will take the employee. So both quite rationally increase the offers. This however could produce the irrational result that a new employee is paid too highly. The prisoner's dilemma seeks to explain why rational actions sometimes lead to irrational conclusions.

prisoner's dilemma

see GAME THEORY.
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King's experiment illustrates how producers can restructure markets for digital goods to escape the prisoner's dilemma.
In my reading, I use the Prisoner's Dilemma for illuminating the central problem in Juliet's negotiations: the problem of trust.
For a concise explanation of prisoner's dilemma games as well as an argument that scholars often mistake coordination problems for prisoner's dilemma problems, see generally Richard H.
If the prisoner's dilemma game is played only once, each player's dominant strategy is to cheat or defect: the equivalent of going back on one's word in Erhard, Jensen, and Zaffron's (2010) parlance.
To compare differences between Japanese and Americans on a one-shot prisoner's dilemma task, Hayashi, Ostrom, Walker, and Yamagishi (1999) arranged experimental conditions such that participants were asked to make their choice either before the other person (self-first condition) or after the other person (other-first condition) had made his or her decision.
Keywords: National cultures * Cultural accommodation * Language * Competitive and cooperative behavior * Prisoner's dilemma game * Quasi-experiment
It is my contention that the current status of the Prisoner's Dilemma in economics reflects the aforementioned conditioning that has beset economics students' performance in PD experiments because the purely numerical assessment of payoffs in PD games presupposes a moral vacuum.
As Axelrod indicated, a typical Prisoner's Dilemma game is the product, with Agency A valuing its information at 2 and Agency B also valuing its information at 2, since for ease of the game we shall assume the information is what it is, a small piece in a large puzzle and nothing more.
However, cooperation can be achieved in the laboratory in the repeated prisoner's dilemma game where standard theory also predicts competitive play in each repetition (e.
We model the dysfunction as a prisoner's dilemma in which banks with excess reserves play a game of Loan or No Loan with each other.
Skoble discusses David Gauthier's familiar analysis that the Hobbesian "state of nature" is essentially characterized as a multiperson prisoner's dilemma game.
Lisa remained in the house until the penultimate eviction night, and her highlights included sharing a jackpot of pounds 50,000 after playing a game of Prisoner's Dilemma with fellow housemate Sara.

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