5 Narrowly defined, a Prisoners' Dilemma situation involves the following: (1) a symmetric, simultaneous-move game featuring two
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5 Narrowly defined, a "Prisoners' Dilemma" situation involves the following: (1) a symmetric, simultaneous-move game featuring two players; (2) the existence of a dominant strategy for each player; and (3) a predicted outcome that is Pareto inefficient.
Draw a payoff matrix that describes such a situation. (It may help to remember the following conventions about payoff matrices: player 1 chooses the row, player 2 chooses the column, and an outcome of (4, 3) indicates that player 1 gets 4 and player 2 gets 3.)
(b) Now draw a payoff matrix that has (1) and (2) but not (3), i.e., has an outcome that is Pareto efficient. (Such a game might be called the "Prisoners' Delight".)
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