Describe Prisoner’s Dilemma.
It refers to two prisoners namely Molly and Knuckles. They were partners in crime and imprisoned together. Now for punishment, the district attorney interviews both of them separately and asks them to be sent to jail. Then he makes a deals with them and states it by saying that
- If one of them alone confess then that person would get off only with a three month sentence while the other partner would serve for ten years, and
- if both confess then both of them would get five years of imprisonment.
Now given this deal, the prisoners dilemma is to confess or not to confess and this dilemma can be represented by way of two -by -two matrix game as follows:
In this case, the most significant result is that when both prisoners act satisfy by confessing, they both end up with longer prison terms of five years. Only when they both act collusively/ alternistically will they end up with short prison terms.