Examples of game theory, Two executives were arrested by

Examples of game theory

Assignment Help Macroeconomics

Reference no: EM1315175

Two executives were arrested by authorities for embezzling money for their firm. Short of confusion the only had enough evidence to put them away for 10 Years. Give confusion; however she was certain to put them behind bers for life without parols, since they killed a law enforcement officer who was investigating the case. The prosecutor put the two prisoners in separate rooms, and told them the following: 'If you confess and your partner does not, I'll give you a year\'s probated sentence but put your partner in the slammer for life without parole. Of course, if your partner confesses and you don't you'll get the life sentence without parole and he'll get one year probation. I must warn you, however that if you both confess I'll

Have enough evidence to put you both away fi=or life without parole.

1. Do you think the Prosecutor's bargain will induce the two executives to confess? Explain.

2. Would you answer change if the life sentence carried the possibility of parole? Explain.

Reference no: EM1315175

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