| inbluevt | Date: Wednesday, 2013/07/24, 3:02 AM | Message # 1 | DMCA |
|
|
Private
Group: Blocked
Messages: 1024
|
The "prisoner's dilemma" is a familiar concept to just about everyone who took Econ 101.The basic version goes like this: Two criminals are arrested, but police can't convict either on the primary charge, so they plan to
sentence them to a year in jail on a lesser charge. Each of the
prisoners, who can't communicate with each other, are given the option
of testifying against their partner. If they testify, and their partner
remains silent, the partner gets three years and they go free. If they
both testify, both get two. If both remain silent, they each get one.
In game theory, betraying your partner, or "defecting" is always the dominant strategy as it always has a slightly higher payoff in a
simultaneous game. It's what's known as a "Nash Equilibrium," after
Nobel Prize winning mathematician and "A Beautiful Mind" subject John Nash.
Read on
|
|
|
| |
Main 
