Example of nash equilibrium-prisoner dilemma

Assignment Help Operation Management

Reference no: EM132219151

You have seen an example of Nash equilibrium: Prisoner's Dilemma. Both prisoners confess and each of them will be in prison for 6 years. This outcome is worse than the case that both are silent (in which case each of them will be in prison for 2 years.) This situation occurs because they are selfish and are trying to maximize their own benefit. Now, suppose that they behave in an altruistic manner: they are always trying to maximize the other's benefit and ignore their own benefit. What is the possible outcome (Nash equilibrium) this time? 1. Nash equilibrium does not exist in this case. 2. One of them confesses and the other is silent. 3. Any situations are possible. 4. Both confess and will be in prison for six years. 5. Both are silent and will be in prison for two years.

Reference no: EM132219151

Questions Cloud

Build competitive advantage using product excellence : Which of the following represents a way to build a competitive advantage using product excellence? Which is NOT a step in the strategic planning process?

Difference between real property and personal property : Provide an example of an attitude and discuss how organization might measure the attitude. What is the difference between real property and personal property?

Create prevention plan to support rise of fredos : Create a prevention plan to support the rise of Fredos in your current or future family-owned business.

Targeted recruitment as means of recruiting job candidates : Which of the following could be a disadvantage of using targeted recruitment as a means of recruiting job candidates?

Example of nash equilibrium-prisoner dilemma : You have seen an example of Nash equilibrium: Prisoner's Dilemma. Both prisoners confess and each of them will be in prison for 6 years.

The pros and cons of government safety regulations : What do you see as the pros and cons of government safety regulations? Is advertising a positive or socially desirable aspect of our economic system?

Altruistic CSR to be more ethical than strategic CSR : Would you consider altruistic CSR to be more ethical than strategic CSR? Explain your answer and give examples.

What advantages would the e-enabled solution give boeing : What is the e-Enabled advantage? How did it link to the company's strategy? What advantages would the e-Enabled solution give Boeing?

Common criticisms of traditional strategic planning process : Identify and discuss common criticisms of the traditional strategic planning process.

User Account

All Pages