Game Theory Questions
The Prisoner's Dilemma is a classic example in game theory that illustrates a situation where two individuals, who are arrested and held in separate cells, have the choice to either cooperate with each other or betray each other. The dilemma arises from the fact that the outcome for each individual depends on the choices made by both. If both individuals cooperate, they both receive a moderate sentence. However, if one betrays the other while the other cooperates, the betrayer goes free while the one who cooperated receives a harsh sentence. If both individuals betray each other, they both receive a relatively harsh sentence. The dilemma lies in the tension between individual self-interest and the potential for mutual benefit through cooperation.