Question

In: Economics

How might threats prevent people from experiencing the “suboptimality” of the Prisoners’ Dilemma? Please provide two...

How might threats prevent people from experiencing the “suboptimality” of the Prisoners’ Dilemma? Please provide two or more specific illustrations and please, very briefly, comment on the extent to which threats are, therefore, justified.

Solutions

Expert Solution

prisoners dilemma was developed by RANd corporation scientist Meerill flood and melvin dresher and was formalized by Albert w.tucker a priceton/ mathematician.

illustration

Najeeb and rashi have been arrested For robbing state bank of india and placed in separate isolation cells.

A clever prosecutor Makes Following offer to each.

" You may choose to confess or remain silent. if you confess and your accomplice remain silent I will drop All charges against you and use your testimony to ensure that your accomplice does serious crime.

likewise if your accomplice confesses while you temain silent. they will go free while you do the time.

if you both confess i get two convitions. but i will see to it that you both get early parole. if you both remain silent i ill have to settle for token on firearms possesion charges.

if you wish to confess you must leave a note with the jailer before my return tommortow morning.

the dillema faced by the prisoners here is that whatever other does.

A common view is that the puzzle illustrate a conflict betwwen indvidual and group rationality.


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