What is the Prisoner's Dilemma?

What is the Prisoner's Dilemma?

The Prisoner's Dilemma is a standard example in game theory that shows why two individuals might not cooperate, even if it seems in their best interest.

Can you explain how it works with an example?

Sure! Imagine two criminals are arrested and interrogated separately. If both stay silent, they get a light sentence. If one betrays the other, the betrayer goes free while the other gets a heavy sentence. If both betray, they both get moderate sentences. The dilemma shows that betrayal is the dominant strategy, even though mutual cooperation would yield a better outcome.

What are the real-world applications of this concept?

The Prisoner's Dilemma applies to various fields, including economics, politics, and social sciences, illustrating issues like trust, cooperation, and competition.

Are there any strategies to overcome the dilemma?

Yes, strategies like building trust, communication, and repeated interactions can encourage cooperation and lead to better outcomes.