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Two prisoners, A and B, alleged to be conspirators in a crime, are put into separate rooms. A police officer goes into each room and says: If your partner confesses and you confess also, you will only get 3 years in prison. If your partner remains silent and if you are silent also, you will get 1 year in prison. However, if your partner confesses and you remain silent, you will get 5 years in prison. But if your partner remains silent and you confess, you will be out in 0.3 years.
a. If prisoner A confesses, what would be the best strategy for prisoner B?
b. If prisoner A does not confess, what would be the best strategy for prisoner B?
c. Define Nash equilibrium: what is the Nash equilibrium for this question?
A local community voting to raise property taxes to increase school expenditures
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