Explain prisoner dilemma game

Reference no: EM1372888

The given matrix demonstrate the payoffs for an advertising game between Hilton and the Oriental. The companies can choose to advertise or to not advertise. Numbers in the matrix represent profits, the first number in each cell is the payoff to Coke (numbers in millions.)

Hilton (rows)/Oriental (columns) Advertise Don't Advertise
Advertise (10, 10) (500, -50)
Don't Advertise (-50, 500) (100, 100)

a. Explain why this would be described as a Prisoner's Dilemma game. Show your calculations.
b. Explain the probable outcome of this game. Please support your reasoning with economics.

Reference no: EM1372888

Questions Cloud

Existence of market failure : The existence of market failure and/or government failure has fuelled a lively debate about the relative merits of using the market

Corporate culture has been alleged to be the toughest : Corporate culture has been alleged to be the toughest component of a business to change. Do you agree or else disagree with this statement and why

Program to permit company-s clerks to enter employee-s name : Temp Employers wants program which will permit company's clerks to enter employee's name and number of hours employee worked during month.

What kind of audit appears to be the most useful : What kind of audit appears to be the most useful in organizations? Since computer systems are flattering used in greater capacity within organizations how should audit standards be improved to reflect this more complex integration?

Explain prisoner dilemma game : The given matrix demonstrate the payoffs for an advertising game between Hilton and the Oriental. The companies can choose to advertise or to not advertise.

Social status influences : Discuss how your social status influences your view of the world. Provide an example from your personal experience of how you have shaped your own reality through social interaction.

Select such an incident from your own experience : Select such an incident from your own experience and write a claim letter asking for a refund, repair, replacement or other adjustment

Explain the roles of computer forensics expert : Explain the roles of computer forensics expert and computer security expert. You should include the following: Which specific positions (job titles) are in demand within business organizations?

Important information related to job satisfaction : Explain how you motivate yourself and others to be productive and what does it take to keep you satisfied in your job?

User Account

All Pages