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    Prisoner Dilemma

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    Rakhee Chatterjee
    The Prisoner's Dilemma game models a situation where two prisoners are interrogated separately about a shared crime. Each prisoner must choose whether to confess (betray the other) or deny involvement (cooperate with the other). The optimal outcome requires mutual denial, but confession dominates as the dominant strategy for both, resulting in a suboptimal outcome of mutual confession. This simple game structure can model many real-world scenarios involving strategic interdependence and lack of cooperation between parties.

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    Prisoner Dilemma

    Uploaded by

    Rakhee Chatterjee
    28 views2 pages
    The Prisoner's Dilemma game models a situation where two prisoners are interrogated separately about a shared crime. Each prisoner must choose whether to confess (betray the other) or deny involvement (cooperate with the other). The optimal outcome requires mutual denial, but confession dominates as the dominant strategy for both, resulting in a suboptimal outcome of mutual confession. This simple game structure can model many real-world scenarios involving strategic interdependence and lack of cooperation between parties.

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    Prisoner+Dilemma

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    The Prisoner's Dilemma game models a situation where two prisoners are interrogated separately about a shared crime. Each prisoner must choose whether to confess (betray the other) or deny involvement (cooperate with the other). The optimal outcome requires mutual denial, but confession dominates as the dominant strategy for both, resulting in a suboptimal outcome of mutual confession. This simple game structure can model many real-world scenarios involving strategic interdependence and lack of cooperation between parties.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    28 views2 pages

    Prisoner Dilemma

    Uploaded by

    Rakhee Chatterjee
    The Prisoner's Dilemma game models a situation where two prisoners are interrogated separately about a shared crime. Each prisoner must choose whether to confess (betray the other) or deny involvement (cooperate with the other). The optimal outcome requires mutual denial, but confession dominates as the dominant strategy for both, resulting in a suboptimal outcome of mutual confession. This simple game structure can model many real-world scenarios involving strategic interdependence and lack of cooperation between parties.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Prisoner's Dilemma

    Prisoner Y

    Confess

    Deny
    Confess -5,-5

    0,-10
    Deny -10,0 -1,-1


    Figure 1

    Elements of the Game:

    Players: Participants in the game (X and Y))

    Strategy Set: Actions that each player may take under any possible circumstance (ConIess,
    Deny).

    Strategy: An action taken by the player.

    Outcomes: The various possible results (Iour) oI the game represented by one cell oI matrix.

    Payoffs: The cost/beneIit that each player gets Irom each possible outcome oI the game.
    Solution to the Game:
    Each player in the game tries to choose a strategy that result in the highest payoII, given the
    choices oI others. II none oI the players aspire to change the strategy, given the choice oI the
    others, the players arrive at equilibrium and the game has a solution. ThereIore, the solution is
    the set oI strategies chosen by the players. Will a game have a solution?
    In the simultaneous move games the players beIore taking any action need to draw the payoII
    matrix which quantiIies the consequences oI the diIIerent moves that the players might take.
    Consider the example oI two players in a game who are entitled to just one move out oI the
    available two options. Their move ultimately results in Iour possible outcomes. The payoII oI
    each player is mutually dependent on his action and the action taken by the other player which is
    termed as inter-dependence Each player has to choose his action without the awareness oI the
    other`s choice. It is a one shot non co-operative game.
    The game starts by listing the players and their alternative choices (actions or strategies). The
    rows oI the matrix represent the actions oI the Iirst player and columns oI the matrix represent
    the actions oI the second player .The entries in the matrix are two numbers that signiIies payoII
    to the Iirst and second player respectively.
    Pr
    iso
    ne
    r
    X
    Prisoner's Dilemma is a very popular game. In this game the two players are partners in a crime
    who have been captured by the police. Each suspect is placed in a separate cell, and oIIered the
    opportunity to conIess to the crime. The game can be represented by the matrix oI payoIIs given
    in Table 1.
    Note that the payoII number signiIies the number oI years in imprisonment Ior the players. II
    neither suspect conIesses, they are imprisoned only Ior a year. However, iI one prisoner
    conIesses and the other does not, the prisoner who conIesses testiIies against the other in
    exchange Ior going Iree, while the prisoner who did not conIess goes to prison Ior 10 years. The
    Dominant strategy is one which gives the player his highest payoII, regardless oI the other
    player`s choice oI action. In the Prisoners Dilemma game, conIessing is the dominating strategy
    Ior X. II Y denies, X is better oII conIessing with no imprisonment and iI Y conIesses, X is
    better oII conIessing with 5 years oI imprisonment.
    ConIessing is also the dominating strategy Ior Y, hence the solution to the game is that both the
    players should conIess and spend 5 years in jail. For both to conIess and get 5 year imprisonment
    is certainly not an optimal strategy because iI both oI them deny they could well escape with just
    1 year oI imprisonment and this is the optimal strategy. But the optimal strategy is inaccessible
    because each oI the player is not certain about the other players choice and there is an absence oI
    trust.
    Prisoner`s Dilemma is quite popular among game theorists Ior a many reasons. It is a simple
    representation oI a various important situations. For instance, instead oI conIess/not conIess we
    could label the strategies "advertise" or "not advertise and many more important decisions could
    be based on this game. This game is good enough to describe the alternative oI two Iirms
    competing in the same market with the strategies Ior example, "quoting a high price" and
    "quoting a low price." Logically it is best Ior both Iirms to quote high prices, but best Ior each
    individual Iirm to quote a low price compared to the competitor who quotes a high price.

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