Game Theory
Strategic decision making and the Prisoner's Dilemma
👮 The Prisoner's Dilemma
Two suspects, Wanda and Fred, are arrested. The police don't have enough evidence for a conviction, so they separate them and offer each a deal.
Interactive Payoff Matrix
Click on a strategy for Wanda and Fred to see the outcome!
2 Years Each
Cooperation
W: 10 Years
F: Free
W: Free
F: 10 Years
5 Years Each
Nash Equilibrium
⚖️ Nash Equilibrium
What is it?
A Nash Equilibrium is a situation where no player can benefit by changing their strategy while the other players keep theirs unchanged.
In Prisoner's Dilemma:
(Confess, Confess) is the Nash Equilibrium. Even though (Silent, Silent) is better for both, neither can trust the other not to confess!
John Nash
Nobel Prize 1994
Subject of "A Beautiful Mind"
📝 Test Your Understanding
Question 1:
Why is (Silent, Silent) NOT a Nash Equilibrium?