Th3.4: ^^ Prisoner's Dilemma

Question 1

Refer to PP

Look at Graph 38. What is the dominant strategy here?

Answer 1

to confess - it’s the greatest reward (3 months rather than a year) and the least bad (3 years rather than 10 years)

Question 2

Refer to PP

Look at Graph 38. What would the best strategy be if the prisoners could collude or had confidence in one another?

Answer 2

to deny the crime - this is the Nash equilibrium