Example of a prisoners dilemma

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Consider the example of a Prisoners' Dilemma, as described in Figure

1. Often, in real world explanations the outcomes are not expressed in utility. Suppose these represented changes in wealth (e.g. so -0.50 means "lose 50 cents").

Player 2

X R

Player 1 X (-0.50, -0.50) (+1.50, -1)

R (-1, +1.50) ( +1, +1)

Fig.1 Prisoner's Dilemma

What could the payoffs look like if the players were other regarding, that is they valued the outcomes of their "opponent" as themselves?

Reference no: EM132795145

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