6. 20 Points. Prisoner's Dilemma. Two individuals have been detained for a minor offense and confined in separate cells. The investigators suspect that these individuals are involved in a major crime, and separately offer each prisoner the following deal, as depicted in the figure below: if you confess while your partner doesn't, you will leave today without serving any time in jail; if you confess and your partner also confesses, you will have to serve 5 years in jail (since prosecutors probably can accumulate more evidence against each prisoner when they both confess); if you don't confess and your partner does, you will have to serve 15 years in jail (since you did not cooperate with the prosecution but your partner's confession provides the police with enough evidence against you); finally, if neither of you confess, you will have to serve one year in jail. A 5 Points. Is there a dominant strategy? why? B 5 Points. Is there a dominated strategy? why? Magdana Kondaridze, PhD Candidate 1 EconS305: Intermediate Microeconomics Without Calculus SES WSU Prisoner 2 Not Confess confess Confess -5,-5 0,-15 Prisoner 1 Not confess -15,0 -1, -1 C 10 Points. Find pure strategy Nash Equilibrium (equilibria) of the game.