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Suppose the Prisoners' Dilemma were modified by allowing a third choice for each player: Partly Confess. Suppose further that the prison sentences (in years)
Suppose the Prisoners' Dilemma were modified by allowing a third choice for each player: Partly Confess. Suppose further that the prison sentences (in years) in this modified game are as follows. Calvin \ Klein Confess Confess Partly 1, 3 1/2, 1/2 4, 1/4 1,1 Not 0, 5 2, 2 5, 0 3,1 Not Partly 1/4, 4 (a) Is it true that Calvin is better off confessing to the crime no matter what Klein does? Explain. (b) Is there any other outcome in this game other than both players confessing which is sensible? Your answer should informally explain why you find any other outcome sensible (if you do).
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Managerial Economics and Business Strategy
Authors: Michael R. baye
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