Show why you would expect the problem to arise

Reference no: EM132123860

Question: The prisoners' dilemma provides insight into much more than price-fixing, as the next three questions indicate.53

a. People often complain that conversations at cocktail parties (where there is no music) are so loud that they have trouble understanding the conversation they are engaged in. Using a prisoners' dilemma game, show why you would expect this problem to arise.

b. Jones and Smith are sharing a 2-quart bowl of popcorn. Use prisoners' dilemma logic to show that they will finish the popcorn more quickly than if each of them were given their own 1-quart bowl.

c. The prisoners' dilemma can also explain the emergence of social conventions, such as driving on the right side of the road. Construct a prisoners' dilemma matrix to show that having everyone drive on one side of the road will be a unanimous choice, but we cannot predict whether it will be the left or right side.

Reference no: EM132123860

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