Blackadder and Baldrick are rational, self-interested criminals imprisoned in separate cells in a dark medieval dungeon. They

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Blackadder and Baldrick are rational, self-interested criminals imprisoned in separate cells in a dark medieval dungeon. They face the prisoner’s dilemma displayed in the matrix.

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Assume that Blackadder is willing to pay $1,000 for each year by which he can reduce his sentence below 20 years. A corrupt jailer tells Blackadder that before he decides whether to confess or deny the crime, she can tell him Baldrick’s decision.
How much is this information worth to Blackadder?

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Principles Of Microeconomics

ISBN: 9780073517858

6th Edition

Authors: Robert Frank, Ben Bernanke, Kate Antonovics, Ori Heffetz

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