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.

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?

Transcribed Image Text:

Confess Blackadder Deny Confess 5 years for each 0 for Baldrick 20 years for Blackadder Baldrick Deny 20 years for Baldrick I year for each 0 for Blackadder