Game theory

Game theory

player 1/player 2       Confess            Deny

Confess                (-10,-10)          (0,-15)

Deny                    (-15,0)            (-1,-1)

Prisoner’s Dilemma” is a classical example to illustrate the fundamentals of Game Theory.  Two players can choose between two moves, either "confess" or "deny".  The idea is that each is better off by confessing than denying.  However, the outcome obtained by both confessing is worse than by both denying.  The whole game The table shows that for each possible pair of moves, cdgbdg c*sefv hgrsthe payoffs to Player 1 and Player 2 (in that order) are listed in the appropriate cells. Suppose Player 2 confesses his crime. Then Player 1 receives a 10-year prison sentence if he also confesses and a 15-year sentence if he denies his crime. Therefore Player 1 is better off confessing. Suppose Player 2 denies his crime. Then Player 1 receives no sentence for cooperating and confessing.  However, if player 1 also denies his crime, both he and Player 2 receives a 1-year sentence. Finally, if both Players confirm their crime, they receive a 10-year sentence each.

 


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