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Prisoner's dilemma:-

The prisoner's dilemma is represented concretely by the diagram in figure 10.8. Each prisoner selects either Q (for quiet) or C (for confess). Prisoner A's decision determines a row and prisoner B's decision determines a column.

Together their two decisions determine a box in the square, which lists the pair of penalties (a, b), for prisoners A and B, respectively. If they could confer and reach agreement, they likely would both elect to be Quiet.

However, when they are separated, A fears that B may switch to Confess, which would have disastrous consequences for A. B has the same fears about A's action. The police interrogators will perhaps seek to make these feared outcomes credible by suggesting that the other prisoner is about to confess. If prisoner A must act first and this act is reported correctly to B, what penalties will the two obtain?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M92004672

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