What is the Prisoner's Dilemma in game theory?

What is the Prisoner's Dilemma in game theory?

The Prisoner's Dilemma is a fundamental problem in game theory that illustrates why two individuals might not cooperate, even if it appears that it is in their best interest to do so.

Can you give me an example of the dilemma?

Sure! Imagine two criminals are arrested and interrogated separately. If both remain silent, they each get a light sentence. If one betrays the other while the other stays silent, the betrayer goes free, and the silent one gets a heavy sentence. If both betray each other, they both get moderate sentences.

What are the implications of this dilemma in real life?

The implications are vast, affecting areas like economics, politics, and social behavior. It shows how individual rationality can lead to collective irrationality, often resulting in worse outcomes for everyone involved.

How can this dilemma be resolved?

Resolution can occur through repeated interactions, communication, or establishing trust, which can encourage cooperation over time.