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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Related Book For
Principles Of Microeconomics
ISBN: 125206
8th Edition
Authors: Joshua Gans, Stephen King, Martin Byford, N Gregory Mankiw
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