Chapter 4, Problem 1QR

To determine

The “Prisoner's Dilemma” and determine the assumptions of this scenario. Also, determine the conditions prevailing so that the outcome is bad for both hypothetical prisoners.

Answer to Problem 1QR

Prisoner's Dilemma is a game theory that is applied to predict the behavior of an individual in strategic situations. The thinkers employ mathematical analysis to sort some difficult situations or in analyzing decision making. Assumptions include predictive behaviours including relations and mutual learning among the individuals. The hypothetical situation includes the sharing of information between the prisoners over the same obstacle.

Explanation of Solution

The Prisoner's Dilemma is the metaphorical description of a situation in which many individuals make the decision in their own interests and they create their own collective outcomes that are not desirable for everyone.

Assumption of the scenario is that the behavior of the person is predictable, and the reaction of each individual will act in their own self-interest instead of being left at risk of disadvantage.

When the prisoners are allowed to share information, they usually do not agree to communicate. The other condition that might be changed is the possibility that the prisoners can find a way over through an obstacle with the person who is asking such questions.