Question

1) Explain why oil producing countries have been caught in a prisoner's dilemma situation?

Answer 1

The Prisoner's Dilemma is a significant thought that has contributed incredibly to the improvement of the game hypothesis. This idea clarifies how two individuals or organizations may keep their best interests in mind regardless of the way that it might be increasingly valuable for them to help out each other. The Prisoner's Dilemma is appropriate to a wide range of certifiable circumstances that are pertinent in the public eye today, including the variance of oil costs. If there are two oil creating organizations whose benefits are enduring as oil costs keep on declining, the two organizations have the choice to either keep up their oil creation or significantly decline/end it. Despite it is to the greatest advantage of the two organizations to keep up their present oil creation, deciding to keep their best interests in mind really propagates the issue of declining oil costs and winds up being more awful for the entirety of the organizations in question.

In light of the Prisoner's Dilemma in oil creation and costs, it is far-fetched that oil costs will arrive at a base sooner rather than later. Raw petroleum stores are at present at unequaled highs, and as of February 2016, oil priests from Iran just as Saudi Arabia have communicated their assurance to keep up their present degree of oil creation until further notice. These outcomes in oil costs proceeding to drop, however, these costs will be not able to hit their bottoms until the supply issue is totally settled. This oil creation concern shows how the Prisoner's Dilemma can be enough utilized as an interpretive system for complex issues in reality.