Question

the prisoner’s dilemma, coordination and assurance games, the battle of the sexes and the chicken game. Describe and briefly discuss an application of one of these games. The application can relate to situations from your own direct experience or describe an example from economics, politics, or some other field.

Answer 1

EXPLANATION:

The game theory like, the prisoner’s dilemma, coordination and assurance games, the battle of the sexes and therefore the chicken game. In that I am going to getting to describe about prisoner’s dilemma with the reason .
PRISONER'S DILEMMA :
The prisoner's dilemma may be a standard example of a game analyzed in theory of games that shows why two completely rational individuals won't cooperate, albeit it appears that it's in their best interests to try to to so.The prisoner's dilemma may be a paradox in decision analysis during which two individuals acting in their own self-interests don't produce the optimal outcome. the standard prisoner's dilemma is about up in such how that both parties prefer to protect themselves at the expense of the opposite participant.
Presenting because it follows:
Two members of a criminal, (deplorable) gang or hunters are arrested and imprisoned. Each prisoner is in solitary with no means of communicating with the opposite . The prosecutors lack sufficient evidence to convict the pair on the principal charge, but they need enough to convict both on a lesser charge. Simultaneously, the prosecutors offer each prisoner a bargain. Each prisoner is given the chance either to betray the opposite by testifying that the opposite committed the crime, or to cooperate with the opposite by remaining silent.
Thepossible outcomes are:
*If A and B each betray the opposite , each of them serves two years in prison
*If A betrays B but B remains silent, A are going to be let loose and B will serve three years in prison
*If A remains silent but B betrays A, A will serve three years in prison and B are going to be let loose
*If A and B both remain silent, both of them will serve just one year in prison (on the lesser charge).

The application relates to a situation in economics.
Example in Economics:
           The prisoner's dilemma has been called the E. coli of psychology , and it's been used widely to research various topics like oligopolistic competition and collective action to supply a collective good.
Advertising is usually cited as a real-example of the prisoner's dilemma in economics . When cigarette advertising was legal within the us , competing cigarette manufacturers had to make a decision what proportion money to spend on advertising. The effectiveness of Firm A's advertising was partially determined by the advertising conducted by Firm B. Likewise, the profit derived from advertising for Firm B is suffering from the advertising conducted by Firm A. If both Firm A and Firm B chose to advertise during a given period, then the advertisement from each firm negates the other's, receipts remain constant, and expenses increase thanks to the value of advertising. Both firms would enjoy a discount in advertising. However, should Firm B choose to not advertise, Firm A may benefit greatly by advertising. Nevertheless, the optimal amount of advertising by one firm depends on what proportion advertising the opposite undertakes. because the best strategy depends on what the opposite firm chooses there's no dominant strategy, which makes it slightly different from a prisoner's dilemma. the result is analogous , though, therein both firms would be more happy were they to advertise but within the equilibrium. Sometimes cooperative behaviors do emerge in business situations. As an example , cigarette manufacturers endorsed the making of laws banning cigarette advertising, understanding that this is able to reduce costs and increase profits across the industry. This analysis is probably going to be pertinent in many other business situations involving advertising.
Without enforceable agreements, members of a cartel also are involved during a (multi-player) prisoner's dilemma.'Cooperating' typically means keeping prices at a pre-agreed minimum level. 'Deserting' signifies selling under this minimum level, immediately taking business (and benefits) from other cartel individuals. Anti-trust authorities want potential cartel members to mutually defect, ensuring rock bottom possible prices for consumers.

Conclusion :
        Finally, the simplest Strategy for the iterated prisoner's dilemma. The strategy is just to cooperate on the primary iteration of the game; then , the player does what his or her opponent did on the previous move. counting on things , a rather better strategy are often "tit for tat with forgiveness".