The prisoners' dilemma is a two-person game illus·trating thata. t he cooperative outcome could be worse for bothpeople than t he Nash equilibrium.b . even if the cooperative outcome is better than theNash equilibrium for one person, it might be worsefor the other.c. even if cooperation is better than the Nash equilibrium,each person might have an incentive not tocooperate.d . rational, seff·interested individuals will naturallyavoid the Nash equilibrium because it is worse forboth of them.
The prisoners' dilemma is a two-person game illus·trating thata. t he cooperative outcome could be worse for bothpeople than t he Nash equilibrium.b . even if the cooperative outcome is better than theNash equilibrium for one person, it might be worsefor the other.c. even if cooperation is better than the Nash equilibrium,each person might have an incentive not tocooperate.d . rational, seff·interested individuals will naturallyavoid the Nash equilibrium because it is worse forboth of them.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The prisoners' dilemma is a two-person game illus· trating that a. t he cooperative outcome could be worse for both people than t he Nash equilibrium. b . even if the cooperative outcome is better than the Nash equilibrium for one person, it might be worse for the other. c. even if cooperation is better than the Nash equilibrium, each person might have an incentive not to cooperate. d . rational, seff·interested individuals will naturally avoid the Nash equilibrium because it is worse for both of them. |
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