Prisoner’s Dilemma
  • is a game analyzed in game theory
  • it is a thought experiment that challenges 2 rational agents to a dilemma:
    • they could cooperate with their partner for mutual reward
    • or they could betray their partner for individual reward
  • The prisoner’s dilemma also illustrates that the decisions made under collective rationality may not necessarily be the same as those made under individual rationality

Matrix

Prisoner B stays silent
(cooperates)

Prisoner B betrays
(defects)

Prisoner A stays silent
(cooperates)

Each serves 2 years

Prisoner A: 10 years
Prisoner B: goes free

Prisoner A betrays
(defects)

Prisoner A: goes free
Prisoner B: 10 years

Each serves 5 years

Strategy

The best strategy is to choose “defect”

Because:

  • If B cooperates, A should defect, because going free is better than serving 2 years
  • If B defects, A should also defect because serving 5 years is better than serving 10

So, either way, A should defect since defecting is A’s best response regardless of B’s strategy. Parallel reasoning will show that B should defect.