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There are two prisoners at the Hague: Dr. Moon and Christopher are suspected of committing a serious international financial crime. They each have a choice: they can either testify against each other or they can keep quiet. Consider the following payoff matrix If both Dr. Moon and Christopher testify simultaneously, they each get a moderate sentence of three years in prison, whereas if they both stay quiet, they each get a light sentence of 2 years. If either of the two prisoners testifies and the other remains quiet, the one that testifies get off free, by contrast the one that remains quiet gets the worst sentence ever (10 1 years in jail at the Hague). Also, there is no binding contract in this game (non-cooperative game); thus, there is no guarantee that each prisoner will stay quiet. What is the dominant strategy equilibrium in this game? Why is this equilibrium also a Nash equilibrium? Explain thoroughly the reasoning behind your answer.
Person 2 Testify Quiet
Persone 1 Testify (3,3) (0,10)
Quiet (10,0) (2.2)
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