What is the Prisoner's Dilemma in Game Theory?

Can you explain the Prisoner's Dilemma in game theory?

Sure! 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.

What are the main outcomes of the dilemma?

The main outcomes are: if both prisoners cooperate, they get a light sentence; if one betrays while the other cooperates, the betrayer goes free while the other gets a heavy sentence; if both betray, they both get moderate sentences.

Why is it called a 'dilemma'?

It's called a 'dilemma' because each prisoner faces a choice that leads to a worse outcome if they act in their own self-interest rather than cooperating.

How does this apply to real-life situations?

The Prisoner's Dilemma applies to various real-life situations, such as business competition, environmental issues, and even personal relationships, where individuals must decide between cooperation and self-interest.