Question

In which scenario is cooperation more likely in the prisoner's dilemma:

a) a "one shot" game

b) a game repeated 1,000 times

c) an infinitely repeated game

d) a repeated game that ends with a specified probability after each time the game is player

Answer 1

Answer - C (an infinitely repeated game)

Explanation

In one shot game, both the players will opt to play their dominant strategies which is not to cooperate. Hence, there is no chance of cooperation.

In a game repeated 1000 times, there will be no cooperation. In the last round (1000^th iteration) the dominant strategy is not to cooperate. Hence, there is no point in cooperating in the previous round (999th iteration). And therefore cooperation is a dominated strategy in previous round and so on. So, with backward induction, we can see that cooperation is not dominant strategy in any round and hence, the players will not cooperate.

In an infinitely repeated game, players will cooperate because they know opponent will also stop cooperating once one stop cooperating.

In a repeated game, with specific probability of ending after each time, depending on the probability values and the payoff values, player may or may not cooperate. We cannot be sure about this.

Hence, it is most likely for the players to cooperate in the infinitely repeated game.