Question

Question A. After studying the Prisoners' Dilemma, what do you think could be an important lesson from a Manager's perspective?. Explain.

Question B. What makes it so difficult for the two prisoners to reach a cooperative solution without confession? Explain.

Answer 1

The prisoners' dilemma is the best-known game of strategy in social science. It helps us understand what governs the balance between cooperation and competition in business, in politics, and in social settings

The prisoner's dilemma is a standard example of a game analyzed in game theory that shows why two completely rational individuals might not cooperate, even if it appears that it is in their best interests to do so.

The prisoner’s dilemma basically provides a framework for understanding how to strike a balance between cooperation and competition and is a useful tool for strategic decision-making.

As a result, it finds application in diverse areas ranging from business, finance, economics, and political science to philosophy, psychology, biology, and sociology.

• A prisoner's dilemma describes a situation where, according to game theory, two players acting strategically will ultimately result in a suboptimal choice for both.
• In business, understanding the structure of certain decisions as prisoner's dilemmas can result in more favorable outcomes.
• This set-up allows one to balance both competition and cooperation for mutual benefit.