Prisoner's Dilemma I

A Nash Equilibrium occurs when all players in a game choose strategies that are best for them, given the strategies chosen by the others. No player can benefit from changing their strategy while others keep theirs unchanged.

Consider the prisoner's dilemma, a classic example in Game theory.

Two suspects are caught and questioned separately. Each suspect has two options. A suspect can betray the other by confessing or denying the crime by staying silent.

Here is the payoff matrix for the game.

If both suspects cooperate by staying silent, they receive one year each. This reflects a penalty for the crime but assumes no additional evidence to increase their sentences.

If one suspect betrays the other by confessing, law enforcement offers the betrayer a deal to walk out free as a reward for the cooperation. However, the silent suspect, having no defense, receives a harsher sentence.

If both suspects betray each other, they each receive a two-year sentence. This outcome is worse than if both had chosen to remain silent.