5 The prisoners' dilemma is a two-person game illustrating that a the cooperative outcome could be worse

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5 The prisoners' dilemma is a two-person game illustrating that a the cooperative outcome could be worse for both people than the Nash equ ilibrium.

b even if the cooperative outcome is better than the Nash equilibrium for one person, it might be worse for the other.

c even if cooperation is better than the Nash equilibrium, each person might have an incentive not to cooperate.

d rational, self-interested individuals will natural ly avoid the Nash equil ibrium, because it is worse for both of them.

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Principles Of Microeconomics

ISBN: 125206

8th Edition

Authors: Joshua Gans, Stephen King, Martin Byford, N Gregory Mankiw

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